Sunday Gazette-Mail from Charleston, West Virginia on August 31, 1975 · Page 14
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Sunday Gazette-Mail from Charleston, West Virginia · Page 14

Charleston, West Virginia
Issue Date:
Sunday, August 31, 1975
Page 14
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Page 14 article text (OCR)

--August 31,1975 * ^ _Z. 1 Woodcock Hits Ford's Inflation Plan DETROIT (* - United Auto Waters President Leonard Woodcock has criticized President Ford for fighting inflation by what he called a "cynical policy" of tolerating high levels of unemployment. Workers and their families are suffering economic distress deeper than in any recession since before World War II, Woodcock said in a Labor Day statement "Thirteen months and some 35 vetoes after taking office." Woodcock said, "President Ford has yet to answer the pleas of ordinary citizens for leadership out of the morass of inflation and unemployment." "An undected President vetoes legislation to create needed jobs, to improve the health of Americans, to hold down oil prices, to-expand education . . . and to help assure adequate food supplies at moderate prices," Woodcock said. The UAW leader contended that what he termed "the failure of the Ford Administration's policies" was "disturbingly underscored by the rampant 1.2 per cent increase in consumer price indexes in July." ·»»»J1BB»BBB1BBBBBBBBBBBB»»»^^^^^----· KtjMwiM CtwrtY Schools Serve You CARVER CAREER AND TECHNICAL EDUCATION CENTER POST SECONDARY EDUCATION _ 4799Midlond Drive Chorieston .WtstVirgrta 25306 Phone 9ZM»6 OFFERS FULL TIME POST SECONDARY TRAINING Most daises begin September 1. 1975 and lost for eleven months. Come in 1:00 p.m. to 5:0)7TM. Monday thro Fridgy during September, tok with Mr. Hunt, register, pay your tuition, and begin your schooling. All post secondary programs cost $25.00 a month with the exception of welding, which is $40.00 a month. Enrollment is made on a first come, first serve basis. We offer the following full time veteran cpproved courses: · AUTO MECHANICS · WUSTRIALMAMTENANCE (Machine Shop) · OFFICE RELATED COURSE Catofetort art Office Prtceiwes.] BUN.DMG CONSTRUCTION · OFFICE TRUNKS (Typing-Shorthand) ·COMMERCIAL FOODS · HORTICULTURE We also otter Electricity and Welding. At the present time these classes are full. If you are interested in these classes, you may call later in the school year and inquire if vacancies have occurred^ Tied Crossing the finish line with their hands clasped are David Pentz and Bill Walker, who tied for first place in the men's division of the second annual The Singles Thing International Championship Floating Truck and Automobile Tire Tube Racing Regatta. Other winners were Gary Walker Jr., best decorated inner tube and Patricia Kilcollin, first place, women's division. (Staff Photo by Leo Chabot) Hoff a Mystery Sparks New Interest in Teamsters Funds The disappearance of former teamsters president James R. lloffa has renewed interest in the controversial union and the vast sums of money- it controls. Government agents repeatedly probe labor racketeering and bad pension fund loans · and sometimes get convictions. The Associated Press has examined Teamsters loans, the borrowers and the officials which combine io make the Central Stales pension fund the largest and most controversial of its kind. This story examines the tribulations of a borrower irho plunged from banking to hotel management to foreclosure. By Donald M. Rothberg and Dick Baines MIAMI (AP) - At best, George Horvath was a questionable credit risk when a Teamsters Union pension fund loaned him $5.8 million to buy a resort hotel. He already had used $4 million in Teamster funds to buy a bank and passel of trouble. But Horvath had lines to the right people, like James R. Hoffa, and that meant more than his credit rating. ' After much wheeling and dealing, Hor- fr 'vath's deals went sour, hardly an unusual * event in the affairs of the nation's largest labor-management pension fund. THE MANY TANGLED deals involving Teamster pension funds are under scrutiny by federal investigators looking for clues to Hof fa's disappearance a month ago. Grand juries in at least three cities, Chicago, Detroit and Newark, have probes under way. After Horvath lost control of the bank he got a chance to recoup his losses with the $5.8 million Teamster loan to buy the Montmartre Hotel in Miami Beach. Four years and no payments later, the Teamsters foreclosed on the hotel. Horvath's testimony in the foreclosure suit provides a unique picture of the methods and personalities involved in the operations of the $1.4 billion Central States, Southeast and Southwest Areas Pension Fund of the Teamsters Union. The judge said the conduct of both sides ' "would be condemned by reasonable and honest men." The Central States Fund is the largest of many set up to provide retirement benefits to Teamsters Union members. But court records and congressional investigations going back 20 years disclose a pattern of kickbacks and conflicts of interest. The fund spurned blue chip investment opportunities in 'favor of plunging 5 Bodies Recovered From Sewer millions of dollars into gambling casinos, race tracks, luxury resorts and Florida condominiums. Periodically the giant union's affairs have received massive publicity. Months of Senate hearings in the late 1950's were the setting for bitter confrontation between Hoffa and the late Robert F. Kennedy, the committee's chief counsel.' From its lending heydeys of the 1960s, the fund has shifted now to funding fewer projects-but plunging in far deeper on behalf of the chosen few borrowers, some of whose names come up.again and again from one deal to the next. Law enforcement officials who have spent years tracking Teamster activities express doubt that the latest investigations will change anything. Teamsters fund investments in Florida are typical of the national pattern. The state ranks third in dollar volume with at least $120 million in loans during the past 20 years. Only Nevada and California have more. Florida ranks first in the number of different projects with more than 40 funded in the past two decades. ^ -^ I Labor Da *| DIVISION OF THE C.C.MURRHY "·· -- TM^^^^~^~ Odell Smith, another Central States Pension Fund trustee, was asked about the Montmartre loan and conceded: "1 would say, just speaking, that it is a pretty long time for a loan to go, yes." Smith also was asked if the trustees looked at the hotel's financial condition before they loaned Horvath 100 per cent of the purchase price. Smith didn't feel the financial condition had to be a deciding factor. "I think it is a lot of factors you have to look at," he testified. "Wouldn't that be one of the major fac tors?" he was asked. "It could be one of them, yes," he said. Horvath described a number of factors he claimed were responsible for his troubles. It began, according to Horvath, when he became involved with Lou Pollar in an attempt to win control of the Miami National Bank. With apparent unlimited backing from the Central States Fund, Pollar won a proxy fight for control of the bank. Horvath alleged that Pollar was under investigation by federal authorities and was looking for someone to act as his front in control of the bank. Horvath was told he could buy controlling interest in the bank "for very little cash and could pay the balance of the purchase price out of the profits earned by the bank." .. Third-Term USE OUR UY-AWAY Two Dcys taly! Sim. MM. A u| .31«dSept.1 Opta 1-7 Sunday 10-10 Monday IMXAHHIUM 3% or 4-ounc* PullSkvint 4 Ply K09* '··' BIG SAYING ON Orion® Acrylic WINTUK YARN Fantastic saving just in time for fall knilting projects. Beautiful, carefree 100% DuPonl Orion® acrylic yarn is ma rU !..j washable and dryable. Big selection of new fall colors to choose from. Murphy'! Mart Brand SKEIN STRETCH YOUR FASH/ON DOLLARS... MM'S No-Iron Matched OUTFITS Rog.'5.47-SMUT NIAGARA FALLS, N.Y. -10 - Scuba divers recovered the bodies of five workmen Saturday from a water-filled tunnel at a sewer construction project where they were trapped by a sudden rush of water. The five men were working in an eight- foot tunnel 50 feet below ground during a heavy rain storm Friday night when water gushed in and filled the tunnel. Police and construction officials began an investigation to find out where the water came from. There were uncomfirmed reports that it came from an old sewer line near the tunnel which filled with rainwater and ruptured. The tragedy was the second in less than 24 hours in this city that is known the world over for its waterfalls. Earlier Friday, an inflatable raft being tested as a possible thrill ride for tourists capsized in Niagara River rapids three miles below the falls and pitched all 29 persons aboard into the raging waters. Two men and a woman were killed and 20 others were injured, none seriously. Six persons escaped injury. A spokesman for the Niagara Falls Memorial Medical Center said the five men killed at the sewer project presumably drowned. Autopsies were to be performed to determine the exact cause of death. The five were employes of the D'Mam- bro and Majestic Construction Co. of Detroit, which has a $7 million contract to build a sewer tine connecting industrial plants with the city's new sewage treat' meat plant . '.'.-: ANOTHER FACTOR typical of the national pattern is the appearance at one stage or another in many of the big loans of one or more members of a tightly knit group of entrepreneur. . For example: + Benjamin C. Cohen, a New York City financier and a familiar figure in Teamster deals, held a mortagage for a short time on the Palm Beach Biltmore Hotel, a sprawling, white, twin-towered landmark overlooking Lake Worth. Cohen assigned the mortgage to. the pension fund in 1965 and four years later the Teamsters foreclosed saying no payments had been made for a year. By then the hotel had shut down and the pension fund ended up owning it. In 1970, Bankers Life and Casualty Corp., a giant Chicago insurance company, borrowed S1.7 million from the Teamsters and took over the Biltmore. The company promised to spend another $1 million on the hotel within 18 months. But now, five years later, it's still closed. A series'of pension fund loans down to even a fourth mortgage were issmed over an eight-year period to finance Boca Tee- ca, a condominium project in Boca Raton, south of Palm Beach. Among the familiar names that appear in public documents is that of Cal Kovens, a Miami Beach builder who was convicted in 1964 in a case involving misuse of pension fund money. The Boca Teeca project now is progressing better than a previous effort on the same land. The fund foreclosed that time. One buyer of a unit at Boca Teeca was Thomas J. Duffey, one of the trustees of the Central States fund. · Kovens also is involved in the Sky Lake development north of Miami. That project has received five Teamster loans with a current balance of $9.6 million and currently is in its second moratorium on payments. The latest delay postpones any further payments until sometime in 1976. Horvath went four years without making any payments on his $5.8 million pension fund loan for the Montmartre Hotel in Miami Beach before the trustees filed a foreclosure suit. (Continued From Page IB) The amendment to the State Constitution that enabled Moore to run for a second term also says a governor may not serve more than two consecutive terms. Here is the exact language: "A person who has been elected or who has served as governor during all or any part of two consecutive terms shall be ineligible for the office of governor during any part of the term immediately following the second of the two consecutive terms. The person holding the office of governor when this section is ratified shall not be prevented from holding the office of governor during the term immediately following the term he is then serving." The amendment was ratified in November 1970, midway in Moore's first term. The language notwithstanding, Moore professes to glimpse a loophole that might permit his name to go on the 1976 ballot for a third-term run. His theory rests on the assumption that the two-term limit means two terms after the amendment's ratification. It was ratified during his first term and he has been elected only once since then. But by his own admission, Moore has not yet been able to find a way to have his theory tested in the State Supreme Court earlier than next year. To get into court, you have to have what the lawyers call a "justiciable issue." The inference was that he meant the federal court route, leading to the U.S. Supreme Court. But lawyers tell us the U.S. Supreme Court doesn't take a case requiring interpretation of a state constitution unless it has first been adjudicated by the state's highest court. That means the West Virginia Supreme Court in this instance. Moreover, if Moore tries to file for a third term, only to be ruled off the ballot early next year, it may be all but too late for him to exercise what is admittedly his second choice among 1976 political options--a race for the U.S. Senate seat of Democrat Robert C. Byrd. The exact technology of the operation is a closely guarded secret, but several sources said it was effected by programming the computer to look for "trigger words." In such a system, the computer scans the message traffic and automatically selects for recording any message that contains the words it has been set to watch for. One source said, for instance, "that the Popular colors of stay neat preshrunk polyester/cotton. Flap, pencil pockets. Long sleeves and tail. S, M, L, XL. Matched pants with permanent leg crease. Reinforced change, 2 hip and 2 side pockets. 29-44 Waist, 29-32 Length. JACKETS FOR FAMILY I I I · ALL STYLES MAY NOT BE AVAILABLE AT ALL STORES I · NOT ALL SIZES AND COLORS 1 AVAILABLE AT ALL STORES REGULAR 3 for '3.77 WORK CLOVES Durable heavyweight llannel or flannel palm wilh canvas back. Knit wrist. Bonus buy ! OUR OWN BRAND ONE POUND SHREDDED POLY FOAM Non-allergenic filler for cushions, pillows, loys. Reg. $1.88 100% Polyester Fiber V V Ideal as filling far toys, pillows, comforters more. SPORTING GOODS SPECIAL 45 CALIRER KENTUCKY RIFLE KIT Has ignilion percussion lock, rifled barrel. 23 easy-to-assemble pans. 57 97 ^ · M CHARGE ·JBr m m ADMIRAL Black Whltt 1?" DIAGONAL MEASURE PORTABLE T.V. With ShMMtd Woodgrab CabiMt "Chuckster" Mossberg .22 Magnum Model 640KD a Genuine American Walnut Stock · 5 Shot Clip Magazine · Bolt Action 0) Convenient Thumb Action Safety ^^f ^^f Reg. TVIHCfffSTfR* 30-30 RIPLE Lever Action Repeating Rifle and Carbine High Powered Iet.JM.H 20"lorrd 7 Shot CHARGE IT! Features wide angle aluminized piclyre lube for clear viewing. Built-in lelescopic VHF and loop style UHF antennas. Detent tuning on UHF. Tunes channels 14 thru 83. 3" speaker for true sound. Western Super X Winchester 144 AS PART OF that suit, Teamster President Frank Fitzsimmons was asked why the Horvath loan was allowed to remain delinquent for so long. "I am sure the record will show it was done in consideration with other dealings computer could be programmed to record we had with Mr. Horvath." replied Fitz- any message which contained the words Simmons. o i l . . . S a u d i . . . or Mideast and it would No one asked Fitzsimmons what those other dealings were. ^^ Stock Reduction Fishing Reel Sale ·Md Ml* (Mtfa Rtaf Rrtfr SfM* IN) »W*1M» )*·»·· Cwhry SMI C«ti«, led £3, 119. $IO.*».Wr UwiMfc 7 ·rid 14N Mttm Uttf Spfe Cnfej ltd CC1 Magnum 22 Hollow Points Box of 30 J77 A «i J3.M Cap and Ball Revolvers .00 1*4* it nted Price! l§ $ "* DUNBAR VILLAGE DUNBAR 10TH ST. AT BRIDGE deliver messages with these subjects in them; 1

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