The Capital from Annapolis, Maryland • Page 12

Pantelides puts 'subversion'charge in writing Attack on Renewal director pressed uKtXHj fr'UftTL i i i Kenewiu AutJicrii) rwwwea eflon io iirt tfle dirtcuf 0 wnttec en; ruro at last night's Unite- a rttofcitior. FtflMuon rd memberi, tht bwnJ wilj Dec or. charge Juhfl Cuff art officai T.ei tc Cttffort firw it jgv wthA-ew the itt Kotos, turuuw Anne Arundel Report With from qcroii the a cannot legally be fired unkss "specific and suhstintwl written cliarijes ore pfraelilrC afii a r.c*."..% cased to make a defense feierdj rrtj-j- STATEMWT OF CHARGES Urban Executive Director John Clifford, Ml. ItetaM, board member John S. Pontelkiei tht formal "Statement of prepared agoirtft Clifford at night's Rather it asked Folos to gm in opinion Dec.

11 or. whether Pantelides accusations are substantial and specific -i. A Utotce oi indoor The charges center on Pantelides with Clifford uver three issues choice of ar. auditor for the authority. Clifford's handling of the authority tuwniwust project and Clifford's handling of a lmonth federal moratorium on the authority's demolition projects.

Pantelides cited a Nov. 1 letter by the authority board to the US. Department of Housing and Urban Development that says that Clifford has attempted to subvert' the board's Augus: C'hulL'tr vJI oil iaudituf. The charges also claim that Clifford, approval jf the board, committed the authority to buying, at a cost of $126,000, sii of the 22 townhcuse units being built as an urban renewal project by a private developer. The units are under construction at Clay and West Washington streets.

Pantelides also charges that Clifford has "not aggressively attempted to lift" the moratorium on demolition, and has been to the local historic interests." Poor negotiating climate That disrespect, says Pantelides, has created "a poor feOrra. nai', jr. by HID ir: and the Mariano Trust 1 HIL). IK, tfTnuD Dtfn i i i i i 6 betww. Pantelwies wr.e'.!x:r the board vies next iwntr.

lu Jcpcrub -argely on UK The hai ajtaJy tuid Uic ixiard mtriiiaers that they be saw daises 'K -e fail certain legal precedents that Kotos -iaims apply a ilw Clifford case. Tne main prcxTMtr.i r. i- u. a jpiniu" he handed to board members last rught involves the executive -f the 1 public, housing authority. Fired by 'JH 1 he-using authority board 1970.

the director went "into federal district court arguing that the dismissal threatened ruin his L-arwr The ordered that unless the housing authority board members save the man written charges and a hearing at which he would be allowed to cross- examine witnesses and defend himself, they could each be sued try mm tor uaniagra. Voting last night to ask Fotos for an opinion on the charges were Pantelides. William J. Curran and Alderman John T. Chambers.

Board member Marita Carroll abstained. Chairman J. Alexander Wiseman votes only in case of a tie. Hospital trustees tell business ties New law requires statements of possible conflicts of interest A nf DiTf Ciwitc call By DOUG STRUCK a niiKt Trustees of the Anne Arundel General HospiUi have filed i a i a i statements, required tor the first time mder a new state law, The law focuses on financial transactions between the hospital and the trustee's businesses, and seven trustees reported such dealings. Three are bankers, and one of these -board treasurer uuries L.

Scbelberg reported that Ute majority of tee hospital's funds eo through his bank. The disclosure statements were required last week under a law passed March, 1973, by the General Assembly at the urging of the state's Hospital Cost Review Commission. The law demands disclosure only of those arrangements of $10,000 or more, and two of the seven trustees technically did not have to reveal their business with the hospital. ine oiner rive uuatoa nlTM reported, however, apparently do fal! within the scope of the new law. Trustee Rebecca CUUucS noted her husband, WUIiain, president of the Chesapeake Savings and Loan Association, which holds a hospital checking f-nrr, (Wl Two officers of the Annapolis Banking and Trust Company -Bank President George W.

Velenovsky and Director James 0. Ofson sit on the board. That bank holds hospital accounts totaling $18,900 last year. Another trustee, Donald B. Smith, is a district director of the Baltinwe Gas Electric business annually with the hospital, according to Smith's statement.

Tbe largest business arrangement, however, is with Farmers National Bank. Board treasurer Schelberg is president of that bank. The hospital's four main checking and savings accounts are held by Farmers, and all the money invested for the hospital Hows through bank. According to hospital records, this amounts to about ja iiiiiiUMi jeoi. Schelberg's disclosure statement indicated the average balance in two of the iuijor hospital aecoaits the general fund and tte payroll account was $64,400, Tbe balance of the other two ac- counts, both savings accounts, is held at a maximum of 110.000 and (50,000 respectively.

When the accounts reach this limit. Schelberg invests the money in government bonds for the hospital. Farmers makes no profit on the funds once invested, and the bank does not charge for the investment service, Schelberg and a hospital spokesman said. It is this service which Schelberg contends is n.nCtnt.1. few ttu knonttal Tn recent interview with the Capital, he said, "111 pot oar (investment portfolio) against anyone else's." Schelberg said the investments made through Farmers nave readied in a higher interest return for the hospital than those made through a trust arrangement with Mercantile Safe Deposit and Trust Company.

"All the transactions (with Farmers) are in the best interests of the hospital," majority of tbe funds have gone through Farmers. 1972. the executive director of the Maryland Hospital But Brooks said the laws on hospital trustee conflict of critical of Clifford, and Marion Satterthwaite were absent. Clifford wrote to HUD In supporting his charge that Clifford attempted to "undermine and subvert" the board's August decision to hire the Annapolis firm of Hoye, Graves, Bailey and Co. to audit the authority's books, Pantelides cites a Sept.

17 letter from Clifford -icVoH lO Ult DOlUillUlC CUCil uuiwl. HUD not to approve the Hoye firm. Clifford told HUD that consideration of the Hoye firm had been pushed by one of the commissioners "for reasons unknown to the staff," and that the board made its decision on a -divided gets a better deal with my bank, and if I can do better for the hospital at Farmers, I'm going to put the monev there." Srhdberg took the nonpaying job as treasurer of the board in March 1973, the Hie itielwmimt iiaai investments have remained at about $500,000, the investments through Farmers have increased from about $500,000 in 19T73 to $1.5 million in 1874. In addition, money in accounts at both Annapolis Banking and Trust and Suburban Trust Bank has been shifted to the hospital's general account at Farmers. According to Schelberg, that move was made at the request of tbe hospital Richard A.

Hettrich, to create a single large account that cwdd be invested. Scbelberg said in his statement that "the consideration the bank receives (for keeping the hospital's accounts), in my opinion, would be offset" by the free services Farmers provides. Scbelberg told the Evening Capital, "If all we did was ran tibe general acconts, we would make money. Bat if yon take the total services we give the hospital, I don't think the bank makes anything." The issue of possible conflict of interest among trustees has been a growing controversy in hospital circles. In December Davidson, sent shock waves through hospital boardrooms by concluding that the appearance of conflict of interest is as bad as actual conflict "If there is even one trustee on your board who personally benefits or even appears to benefit personally from his relationship with your institution," Davidson said of frftgptnis, "you need to know it and JOB need to enu u- AcconSng to John Brooks, special counsel to tbe commission, the law was sparked by a series in the Washington Post in December 1972 conflict of interest on several hospital boards.

"That made a big impression on the state legislators, and they said, 'By God, we don't want that happening here'," Brooks said. Although the law passed in March last year, Brooks said bureaucratic delays prevented its implementation untu uus year. The statements now will be reviewed by the commission, be said, and any bwnew arrangements which appear unusual will be investigated. cases of outright fraud would likely be prosecuted, -I think the main result of this law is that the trustees will start to scrutinize their transactions themselves, 1 he sail 'They're going to be looking at their arrangenents in a whole different light, and they'll be limiting themselves." Brooks noted that even disclosure of financial same 'fve hacfa lot of people get very much upset, about this law," Brooks said "They think it imputes their integrity." Schelberg said he is fully aware of the possibility of conflict of interest in bis role. "There's nobody more aware of that than I am," be told tbe Evening Capital.

But, be asserted, "I nave no qualms that I have done the best 1 can and Farmers has done best for the hospital." In addition, Clifford cited a Sept 9 legal opinion by Fotos that the Hoye firm would have a conflict of interest because it had previously worked for the authority in setting up the books, and because the authority's accountant is a former member of the firm. HUD told the authority Oct. 21 that" it would appear that tbe Hoye firm should be disqualified." On Nov. 1, the authority's board sent a letter back to Baltimore, reaffirming the choice of Hoye, and "strongly disapproving" of Clifford's attempt to "subvert" the board's decision. The townhouse units, called Martin Luther King Village, are i f-- me iwm tv nnn has tnM fhp hnnrri ttwt Ml offer to havethe authority finance six of the units was essential to getting a $300,000 loan on the remaining 16 units for the developer, Interlink Inc.

of Croflon. Clifford, who earns approximately $22,000 per year, is not under contract. Alton, Pascal meet County Executive Joseph W. Alton Jr. and his successor, Robert A.

Pascal, met yesterday for several hours to discuss Pascal's takeover of the President Sherburne B. Walker supports Schelberg. He told tbe Evening Capital be and other board members "see nc possibility of couSict of tatsrt" in Scnelberg's roie. Robert R. Strott, the county's director of administration, attended part of the meetuig, as Hermann K.

Intemann. chief rampaien aide and a guiding figure ir the formation of a new executive branch. In a related matter, Dene Steinberg. Pascal's campaign press aide, said she will not be ioinine the new administration. She handles publicity for several members of the General Assembly and said she will be spending all her time in that job when the session begins in January- Sererna Park pilot dies in Navy jet crash A Navy pilot from Severna Park was killed Wednesday when his jet crashed during night landing practice near tbe Pugent Sound, Wash.

Lt David M. Lumsden, 27, was piloting a Grumman Intruder jet for the first time in a new squadron stationed at Wbidby Island Naval Air Station when the accident occurred. A second officer, Cmdr. Sheldon Hurbiti is missing following the crash, and is presumed dead. According to a Navy officer, Lumsden had jvst joined the VA-95 soiiadron on Wednesday after having been retrained to pilot the Gmmman jet at a training squadron on the base.

On Wednesday night be borrowed some flight gear and began practicing landings with Cmdr. Hurbitz. Tbe exercise was designed to simulate landings on a aircraft earner deck, and Lumsden made several trial runs at the marked off ares After landing. Lumsden began to tace on. out ms uu hook snagged a steel cable designed to catch the planes on landing.

Witnesses saw Lumsden jet make a roll and fall upside down into shallow water off Pufant Alton's fiscal policies blamed Schools 4 ham-strung': board ByJOELMcCORD Staff Writer County Board of Education members sharply criticued County Executive Joseph W. Alton fiscal policies last night, charging they had hamstringed the school system. Speaking at a countywide Citizens' Advisory Committee meeting, board member CoL Raymond C. Smith accused Alton of cutting 'Us off at tbe knees at budget time." "We need more teachers and we kaow it," be said, "If we hadn't bad to go to a $1.81 property tax this year, we would've had tbe teachers." County property taxes dropped from $2.56 per $100 asseased valuation in 1973, to $1.81 this year as Alton held budgetary requests to a mjiymiin and moved surplus hinds from the 1973 budget into this year's fiscal plan. The school board asked for ftrnds to hire 178 new teachers during budget bearings last May.

but received enough for only 106 additional teachers. Teachers, meanwhile won an 14 lice cases at junior high Nurse denies rumors of epidemic at school 8.7 per cent pay bike from tbe County Cooocil "We're obligated to provide lunch for added board member Charles Truffer, "but it mast be a setf-suffictent operation. We couldn't get any money from the county because the executive says the people can afford a $3 property tax, but he also says they can afford to pay whatever it costs to run the knch program." The board increased lunch prices five cents this year after it was stymied in its attempts to win more money for the UM. mam- According to the officer, the accident occurred 'in five second? it was too fast to rren think about He was a 196S graduate of tbe Xavtl Academy. from there was stationed aboard a destroyer serving off Vietnam for a year After retarnrag to tbe U-S-.

enroBed in Bight training and recesttd ton winp in He 10 DBTT OaWt tfi mttter'i degree tram the University of Georgia, ww transferred to State far to the Jet and ww to the i (fee to 6e aeptoytd ub jursTR ZKZX sen According to nfl father, Dtvid ww "wry happy" flvinf and was forward to tbe assignment at set. fc action to his Stephen Lumsden, 16 at home, grandparents Mr. and Mrs William Barnes, in Lopswefl, Maine. Funeral arrangements hare yet DM Ramon of a "bee epidemic" at Amaponi Junior High are cording to Doris Fields, a deptrtoem who if vhnnJ newral weeks an. "We checked ewry tbe morong sewn and part of tbe afternoon and only fowdM but two of mem art back in school DOW." sin.

rmot uite motor cmued her "ftm or foar wwks to my ake kid discovered in her OMgtteri oaif. A MMMlMfifit check Ol stadeatt in ttae 0rf 3 classes and the entire morning session popalatM turned op 13 caaet, she said. The other infected student was discovered daring spot check of afternoon session All students who bad bee were sent home with is- the insect larvae. Tbe students COQjQ Qot. ut rCftuAUXEBu tO sdwol without another examination.

"We dUtftOKl aay ave bags. They were aH eggs, or what we call nits," Mrs. Fields said, indicating there was little chance of a coctnuiBg oat- break. tary, said school officials bad discovered and treated "aertrts! chiMrw," bat Mid didn't know how many. He added mat teachers bad been reminded to keep students, "as a matter ot Alton rejected a $127,000 subsidy request for the County CAC chairman Saonel Crowder had amted County Ratert A.

Uie aewiy elected County Council UK Uwra sueeu an the afternoon sennon irb- next week a Leva, principal st IK aiio fideatial of infected sUateiiti who had broften or aoters at other schooit to priDdptls so they would be mn to screen those starinfe. Tom Johnson, assistant principal at Parole Elemen- been "no ftulher Tmtroot for head Mce involves using an antiseptic shampoo and a fine tooth comb to kill the eggs and remove r. M4CV4 UJC ftJAfcl. "It's a very difficult process," Mrs. Fields explained.

"Yon have to shampoo, then tea vert OB for nonn. After yw rime it yoa havt to canb aB the rite Of covne. von have to havt someone yon yon conki find all of them Mrs FteMs fov visits a week to tbe janior tngh school. at Mikle School to discuss "Educational Priorities" in the canty. Several times durinf the meeting, sptakers tnrned to the budeet theme, utmatig the relatiofuaip between what people want from the school to pay in Um.

ciutwocd the CAC fxrt to "07 wdf at iifHrtawt a "There a jnct so nnefa money to go vond," he said. "And we have to know what the really important issues are. JHI KMBtT A. erf a niflit in NWaarHy dF caunty CAC. At Wf).