The Mercury from Pottstown, Pennsylvania • Page 1

Stroudsburg despite a Hess's mall, has hope By WILLIAM REINECKE Mercury Staff Writer really not out to destroy anybody or put people out of says vice president Fred Ben- telspacher. And then there are those who see it Ben- way. Namely, the merchants of Stroudsburg. of Allentown, announced in 1976 that it was going to anchor a mall of 40 stores a mile outside the town. Fortunately for the merchants, they had already begun work on a revitalization plan, much like to combat shopping center competition.

Although a town of only 6,000, and one whose major industry is tourism, Stroudsburg fell prone to many of the ailments that hit Pottstown. Likely enough, Pottstown now appears to be following a similar route out of the financial pit that threatened to engulf Stroudsburg. And like Stroudsburg, outskirts now seem about to become the host to Overwhelmed by federal paperwork, borough manager quit last year. A $376,000 federal grant that the town qualified for fell through. Three major industries moved out suddenly, leaving nearly 1,000 persons without jobs.

Then came the announcement that Hess's was moving in with 40 satellite stores, and it appeared that the Allentown luxury store was about to lay waste to the Poconos honeymoon town. It quite work that way, says new borough manager, Fred Wilder. first there was a kind of psychological horror. There was a substantial fear of get me wrong. The businessmen are still not that optimistic, but adopted an attitude of Although the attitude may have been wait-and-see, the plan was not.

The businessmen and the borough raised $300,000 from community development funds and another $400,000 from a special state and federal program for traffic planning. Wilder believes Stroudsburg to be the only community in eastern Pennsylvania to have cashed in on the Traffic coordination is also an integral part of revitalization plan. To their surprise, even the state Department of Transportation participated in the revitalization study as far as the traffic planning was concerned. Wilder said. Still concentrating on economic revival, the businessmen organized a consortium of four local banks last week and were guaranteed $1 (Continued on Page 11) DPBA head would like to see Hess's build store downtown Clothier Marc Weitzenkorn is skeptical that of Allentown, is moving to the Norco Mall, but said Tuesday that if the department store is, indeed, arriving in the Pottstown area, he would prefer that it locate in town.

In fact, Weitzenkorn, as president of the Downtown Pottstown Business Association, says he wants to move into the South Hanover Street redevelopment project, across the street from his High Street store. "We would love to have in the redevelopment he said. It was revealed Monday that is negotiating to move into the space occupied by Britts in the Norco Mall. Britts is folding that store in January. Weitzenkorn speculates that there is insufficient space in that building for A quality merchandise store, which he feels is, needs more room for displays.

discount store, though, can have aisle after aisle like a grocery store type not cutting down the Norco Mall. just a question of space Furthermore, merchants have circulated unfounded rumors of coming to town on several other occasions, Weitzenkorn said. Because of inventory of high fashion merchandise, the department store more likely would be located in an urban area, which would have a larger number of affluent shoppers, he said. Weitzenkorn denied Tuesday saying that he see located the woods beside as he was quoted in (Continued on Page 11) he erc Vol. 47 No.

24 All 323-3000 Clemmed Hotline 326-6000 Pottstown, Pa. (19464) Wednesday Morning. October 26, 1977 92 Pages 7 Sections 20c A COPY $1 00 A WEEK HOME DELIVERY and Police ratify contract No raise and a cut in benefits was initial offer to its policemen this year, and it until after the threat of costly arbitration that the borough upped its offer to 5 per cent for 1978. The police accepted the offer by a 24 to 15 vote. The agreement, which is traditionally applied to all other borough employes, gives an average $670 annual raise to patrolmen, $700 to sergeants and $730 to captains.

A top scale patrolman currently earns $13,813. Even after the final offer, there was a deadlock vote Thursday night. Negotiations began in April and the police, asking for an 8 per cent increase, were not pleased by the counter proposal. the guys went said Karl Karlson, chairman of the negotiating committee. The cut the borough wanted to make was in the $150 given toward tuition and books as an education incentive, plus the $1,200 annual raise for completion of the degree.

During the last week of negotiations, the borough offered to rescind the cut and give a 1 per cent raise. The last day, the offer was made: a 3 per cent increase, Karlson said. The police consequently asked the matter to be arbitrated, which may well have been a tactical maneuver, since arbitration would have cost the borough thousands of dollars in legal fees. The new contract is for two years, also something that was hotly disputed by many of the policemen, says Karlson. In the second year, the police get 6 per cent.

wanted a one year contract because they know the (Continued on Page 11) ------------------------------------Cloudy with rain Rain likely today, high in mid to upper 60s. Partly cloudy and mild tonight and Thursday, low in low 50s, high Thursday in upper 60s. Chance of rain 70 per cent today, reducing to 20 per cent tonight. Winds 5 to 15 miles per hour. Campaign '77 Coverage of campaign begins in Mercury.

Stories on page 16 examine races in the Boyertown area as well as in East Greenville and Skippack Township. Articles on other area political races will appear through election day, Nov. 8. Index Boyertown ......................20 Editorials .........................4 Foreign Modern Living News People in the State Deaths Mrs. Mabel Howe, Spring City; Mrs.

Marian Swavely, Coatesville RD Mrs. Julia Rawnsley, Royersford, and Mrs. Harriet Bechtel, Stowe. Obituaries on Page 2 Funding cuts, business tax hike Democrats near compromise on a budget for Pennsylvania HARRISBURG (AP) Senate Democrats appear close to a compromise that would solve budget woes with a business tax increase and cuts in government operations and programs. The 30-member caucus, divided over whether to raise personal taxes, met privately throughout the day Tuesday.

At one point, they had agreed on $123 million in budget cuts, deferral of $100 million in new school subsidy payments and a $100 million increase in the corporate net income tax. But after members went to the floor to vote, the compromise started falling apart, Democratic leader Henry Messinger said. Some members changed their minds about supporting the subsidy deferrals. Others swallow a proposed $24 million cut in wellare cash grants. And some objected to holding state-related universities and institutions at last levels.

The caucus went back into private session and then decided to meet again Wednesday morning before taking any floor action. come up with something by Sen. Edward Early, D-Allegheny, said Tuesday night. The same feeling was expressed by Sen. Thomas Nolan, D-Allegheny, who along with Early and about a half dozen other senators, blocked leadership attempts to push through an increase in personal taxes.

Although some sort of breakthrough appears near, there are still differences over what it will contain. The no-tax senators seem confident businesses can absorb the tax increase alone as long as some reforms are included. One reform would let businesses pay their taxes quarterly instead of in advance. But Messinger still thought there was a chance to divide the tax increase between businesses and individuals. think there is sufficient support for a slight increase in the personal income he said.

Supporters of the leadership plan have said taxes are driving businesses and jobs out of Pennsylvania and any increases have to be shared. In any case, they say, higher business taxes will be passed along to consumers. And any cuts the Senate makes in the budget passed in August must go to Gov. Shapp. He may be unwilling to give up the increased state spending (Continued on Page 11) Area artist's husband on trial for tapping telephone By NANCY PINKERTON Mercury Staff Writer It was the American dream a horse farm in scenic Chester County and days filled with tennis, art shows and the laughter of two teen-agers.

The professional world of Mildred Sands Kratz, locally known and nationally acclaimed artist, flowed with museum shows, gallery sales and accolades for her oil paintings. But with the beautiful life came divorce action and months of legal and domestic wrangling between Mrs. Kratz and Lowell Kratz, her husband for 30 years. This story of a marriage coming apart between an gallery visits and her horse shows was detailed Tuesday in taped conversations played before a Chester County jury. On trial is Lowell Kratz, Pottstown RD 2, for allegedly breaking state wiretapping laws by bugging his phone.

The 52-year-old stone mason was charged by state police at Embreeville with breach of privacy by eavesdropping and illegal wiretapping from April to July, 1976. According to police, a cord spliced into the house phone was connected to a tape recorder in the tack room of the Warwick Township home. Next to the recorder discovered July 6,1976, police found notes corresponding to conversations on the tape. According to testimony Monday afternoon and Tuesday, handwriting was on the notes. During the months the phone was bugged, the Kratzes were involved in divorce proceedings.

But both lived with their two daughters in their Warwick home. Related story on page 3 Divorce and property actions brought by both parties are still pending, but Mrs. Kratz now lives in Pottstown. The jury Tuesday heard the taped phone conversations played on the confiscated recorder. Judge Thomas A.

Pitt Jr. pointed out that the case was similar to recent case of great because the Kratz tapes also contained gaps separating conversations. The tapes revealed the story of a complicated and frustrating summer with Mrs. Kratz calling friends for moral support and advice. Conversations included personal calls about children and the social activities of Mrs.

Kratz and her friends, and accounts of legal strategy planned for divorce hearings. Reference was frequently made to Pottstown attorneys Louis and Lawrence Sager, who are representing Mrs. Kratz in the divorce, and Fred Cadmus, a West Chester attorney representing Kratz. As the jury listened, State Trooper George March indicated a note with circles around numbers corresponding to conversations, and the handwritten message, Witnesses testified the notes matched handwriting. Other witnesses described the bugging device and said it was of the category which violates the wiretapping statutes.

Cadmus told the jury Tuesday afternoon as he began the defense case that he would show Kratz was justified in putting a tap on a phone in his house. was plenty of reason for (ConUnued on Page U) It could hove been worse A state trooper examines the mangled car of a Collegeville man Tuesday morning after it collided with a truck on Route 422 in Upper Providence. The driver was seriously he mercury photo by Tom Kelly was lucky. The empty truck he hit normally carries dynamite. See story on page 3..