Sunday Gazette-Mail from Charleston, West Virginia on July 18, 1976 · Page 13
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Sunday Gazette-Mail from Charleston, West Virginia · Page 13

Charleston, West Virginia
Issue Date:
Sunday, July 18, 1976
Page 13
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13A -July 18, 1976 Sunday Gazette-Mail -Charleston, West Virginia Leather Boat Reaches Harbor in Iceland REYKJAVIK, Iceland (AP) -The leather boat Brendan sailed intoReyk- javik harbor Saturday after a two-week voyage from the Faeroe Islands 500 miles across the North Atlantic. Within hours the boat and ite five-man crew was visited by Icelandic President Kristjan Eldjarn, an archeologist and authority on the history of civilization. The president was welcomed aboard the 36-foot, banana-shaped open boat by Capt. Tim Severin, the English writer-explorer who is out to prove that Irish monk St. Brendan could have sailed to North America in a similar vessel nine centuries before Christopher Columbus. The Brendan was welcomed by Britain's ambassador to Iceland, Kenneth East, and a large crowd of Icelanders. Severin. 35, said the crew will spend about one week here, working on the boat. He said the main task is to grease the 42 oxhides from which the' boat is fashioned. He said the hides were standing up well to the sea. "We've made good time and are ahead of schedule," said Severin, who set out from Ireland at the end of May on the four-month, 4,000-mile voyage to Boston, Mass. The next stage is the voyage from Reykjavik to Julianhaab in south Greenland, more than 800 miles. Businessman Tells of Payoff To Teamsters to Get Loan sumed by Daniel Shannon, the tunu CA-^U- live director, who was unavailable to comment. 4 Nations Propose Fund to Aid Egypt CAIRO (AP) - Four oil-rich Arab countries proposed on Saturday to create a $2 billion fund to prop up Egypt's sagging economy. Finance Minister Ahmed Abu Ismail said. The money would be chaneled through, and presumably managed by, a body to be known as the Gulf Organization for Development in Egypt, Abu Ismail was quoted by the official Middle East News Agency as saying. * * * THE REPORT followed Abu Ismail's meeting with the finance ministers of Saudi Arabia, Kuwait, Qatar and the United Arab Emirates to discuss the project. Abu Ismail did not say'when arrangements for the plan would be completed. the proposed fund falls far short of the $12 billion which Egypt had originally sought from the four countries toward financing the country's $20 billion 1976-1980 economic plan. The Arabs balked at the larger figure and suggested $2 billion. More than that would be available to Egypt, however, since she could borrow from other sources on the basis of the money available in the fund. Abu Ismail said the proposed organization would participate in financing agricultural, industrial and housing projects included in the development plan. Some financing would be provided in cooperation with countries and organizations not participating in the fund, Abu Ismail said. * * * ' THE OFFER, as reported by the news agency, 'indicated that the Arab oil countries had rejected proposals that Egypt be allowed to draw at will on the fund in favor of overseeing the spending by an advisory or controlling board. Informed sourcs said this was one of the alternatives suggested by Egypt in its bid for aid. In a related development, the semiofficial Al Ahram newspaper said Egypt is asking the World Bank to inform countries interested in investing in Egypt's five- year plan to form a consultative body. This would very likely also give these countries a say in how the money is to be spent. CHICAGO (AP) - A California businessman has told federal investigators he made a $200,000 payoff to obtain a $1.3 million loan from the Teamsters Union's Central States Pension Fund, a source close to the fund said Saturday. The source, who asked to remain unidentified, confirmed for The Associated Press details of the payment as reported by the Chicago Sun-Times. He said Foy E. Bryant, owner of the Mount Vernon Mortuary in Fair Oaks, Calif., has told federal officials he made three payments of $50,000, $75,000 and $75,000 to Alvin Baron, 50, formerly a powerful official in the fund who handled shortterm investments, the source said. * * * A SPOKESMAN for the fund said it would have no official comment since the matter was under investigation. Bryant was not immediately available for comment. A federal grand jury is investigating Bryant's allegations against the pension fund, which has' assets of $1.4 billion and covers 450.000 Teamsters and retirees in 33 states. U.S. Atty. Samuel Skinner, heading the investigation, declined comment. The Internal Revenue Service, in a separate action, reportedly has withdrawn the fund's tax exempt status -- effective Sept. 1 -- due to questions about the management of the fund. The fund also is being scrutinized by the departments of Labor and Justice for alleged mismanagement and for making substantial loans to shaky business ventures. 1 some associated with organized crime. Records examined by the Sun-Times showed Bryant's Mount Vernon corporation borrowed a total of $2.8 million from the fund. Initial loans, the newspaper said, totaled $1.5 million in 1964 and 1965. Bryant went back to the pension fund in Concert Planned HURRICANE-The group "Music Un limited" will perform popular music from the 1940s through the 1970s during a con cert at 2 p.m. Aug. 1 at the Hurricane Community Park. 1974 and negotiated an additional $1.3 million loan after dealing with Baron, the source said. » » * BRYANT THEN had trouble making the loan payments and requested a delay. In April, he talked to pension fund officials in Chicago and brought his corporate records which showed a $200,000 expenditure as il loan fees" in connection with the $1.3 million loan made in December, 1974, the Sun-Times reported. Trying to Clear High Hurdles, Puerto Rico Faces Brushoff By Leonard Silk (C) New York Times Service SAN JUAN, P.R.-When Rafael Hernandez Colon, the governor of Puerto Rico, was rushing to the airport to meet President Ford last month, his limousine blew a tire. HE WA SLEEPIN6 BEHINP MR.MAKTIN'b WAS Tf?iMMIN6 IT ! JpON'T 6ET CAU6HT I NAPPING I SELL YOUR I EXTRAS NOW WITH | FAST-/vmON FAMILY WANT APS! IMIIf Gazelle-Mail 3484848 FOR QUICK RESULTS USE GAZETTE AND DAILY MAIL WANT ADS PH, 3484846 I By the time the tire was fixed, traffic was congested and a crowd demonstrating for Puerto Rican independence was blocking the airport's entrance. When Gov. Hernandez Colon ordered his police escort to knock a locked gate down, the Puerto Rican police car couldn't do it. Finally, the governor jumped over the fence, cutting his hand and muddying his shoes, had to explain his way past Secret Service agents, and made the runway with less than a minute before the President descended from Air Force One. For all that trouble he got to shake Ford's hand and hear his airport statement, aimed at Fidel Castro, warning outsiders not to meddle in Puerto Rican or U.S. affairs. In it's way, the governor's run to the airport symbolizes Puerto Rico's troubles today: the problem making the industrializing society work, the small but disturbing effect of the independence movement, the determination of Puerto Rico's leadership to leap over all obstacles, and the quick brush from Washington. PRESIDENT FORD, on the island for last month's economic summit, and Gov. Hernandez Colon didn't explore the problems then. And there has been no break in the President's silence on the Compact of Permanent Union between Puerto Rico and the Unied States, the document the island's leaders propose as the symbol of their interdependence with the mainland and the instrument by which Puerto Rico would gain greater independence in managing its own affairs. Une of the most crucial parts of the Compact would give a Free Associated State of Puerto Rico exclusive jurisdiction over its minimum wage and working hours, except for the shipping and aviation industries covered by federal laws. · The Puerto Rican government and its economic advisers, including a high-level committee headed by Prof. James Tobin of Yale Uniersity, once a member of President Kennedy's Advisers, have concluded that the U.S. minimum wage--$2.40 an hour--has become a serious roadblock to further economic development here and a major cause of high unemployment. Puerto Rico has been slowly recovering from the severe 1974-75 recession, but unemployment remains enormous. The official unemployment rate here in March was 19.2 per cent. Hernandez Colon thinks that the true rate-taking account of dropouts from the labor force, more like 30 per cent. The government still is committed to continuing the 100 per cent tax exemption program of the commonwealth for industry, for periods of 10 to 15 years. It also wants changes in the United States Internal Revenue code to allow American corporations to repatriate their Puerto Rican earnings flexibly, with a minimum of taxation. There are shifts of emphasis, however, in the development program. The government is putting its weight behind expansion of petrochemicals, Pharmaceuticals, and electronics--high-wage industries that require more skilled workers--while moving away from heavy dependence on the low-wage textile industry. It is also putting greater stress on agri culture. * * * ANOTHER PROVISION of the proposed compact would give Puerto Rico, with the agreement of the American president, the right to limit the number of aliens on the island, to keep out immigrants who might take jobs. Moscoso says the root cause of the economic troubles is overpopulation, -3:2 million inhabitants, or more than 900 per square mile, making Puerto Rico one .of the most densely settled areas in the world. Migration to the United States no longer keeps the population growth down. In 1950, net migration was running at 34,000 a year, and as recently as 1970,44,000 Puerto Ricans came to the United States. But in 1973.1974 and 1975, there was net in-migration to Puerto Rico--reaching 39,000 in 1975--in large measure a result of the mainland recession. " U n t i l the p o p u l a t i o n problem is solved," says Moscoso, "all else is whistling in the wind." Although in certain respects--particularly its language and culture as well as its status as a developing country--Puerto Rico appears to be a separate entity from the United States, its close economic, financial and monetary ties to the mainland greatly limit its freedom to manage its own fiscal and monetary policies. * * * PUERTO RICO CANNOT print money like the government of the Unied States or any other sovereign government. It must, therefore, balance its budget and live within its means--old-fashioned prescriptions for sound economics that were strongly emphasized by the Tobin committee when its members reviewed the strained financial structure of the island. There were concerns that unless the commonwealth puts its affairs quickly in order, its bonds would lose their marketability and the credit ratings would sink. Ratings of bonds issued by Puerto Rico and its agencies, were in some instances lowered during the recent widespread crisis of the municipal bond market, but they are still considered "investment grade" securities. The Tobin committee's recommendations for a strict austerity included: *· A sharp limit on government spending and pay increases. Increasing tax revenues, expecially by raising land and real property taxes, tighter enforcement of the income tax, and heavier taxes on durable consumer and luxury goods. ·· Requiring government enterprises to operate with current surpluses. Straightforward marketing of Puerto Rican bonds, complying strictly with Securities and Exchange Commission requirements for corporate issues. »· Clamping' tight restraints on wages. »· Encouraging private tax-exempt firms to reinvest their prof its. in operating facilities in Puerto Rico. Puerto Rico's government fundamentally accepted the Tobin diagnosis and prescription. Said Hernandez Colon: "Puerto Rico must generate internal savings to-finance a larger part of its public works, expecially now that external finance is limited." When asked by Teamsters officials. Bryant said the money was a payoff to Baron, the source said. The information was then carried to federal investigators on the advice of Teamsters President Frank E. Fitzsimmons, the source said, and Bryant repeated his story in a subsequent interview with federal authorities. Baron, who lives in Las Vegas. Nev., was asked to resign by the fund's trustees, a source said, and his duties were as- RHMDH.SBL£Y,M.D. announces the opening of his office for the practice of MTIWMDIC mi HAND SURGERY CAMC Medical Staff Off ice Building Suite 610 3100M(CorkleAve.S.E. Charleston, W. Va. 343-8846 SEMI-ANNUAL Nothing's changed but the price Vested Suit Collection Regularly SI 15 to $175 3990 Exceptional values from our designer collection of summer and year 'round vested suits... Perfect for right now. All from our regular season's stock by such designers as Bill Blass, Yves St. Laurent, Arthur Richards and our own Barrister collection. Men's Clothing, Second Floor. Entire Collection of Men's Tailored Leisure Suits 20% off PARK FREE 2 HOURS, with purchase, at Community Parking Lot, corner of Virginia and Hale Streets

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