Alabama Journal from Montgomery, Alabama • 2

Thursday, March 20, 1975 ALABAMA JOURNAL, Moattomerr. Ala. Off Officio Cecil D. Evans, deputy director of the federal loan program here, testified at a state court hearing in February that he received more than $2,000 in cash and trips to Las Vegas and Jamaica in return for referring colleges to Collegiate Recovery for collection of defaulted loans. Evans has resigned his post.

An internal audit of the Texas Education Agency's Division of Proprietary Schools and Veterans Education, made public Wednesday, said that students of 20 proprietary schools "suffered enormous collective losses" when they did not receive tuition refunds. The report said the schools were repeatedly asked to comply with the law, but no enforcement action was taken when they did not. Under the law, a student who drops out from a school, either voluntarily or if the "I don't think there is any question but that this is a serious matter for the entire United States," the chairman of the Texas school board, Joe Kelley Butler, said last week. Student loan program offices throughout the nation are being checked by HEW, especially where cash is handled, an HEW spokesman said. In the loan program, the U.S.

government guarantees repayment of loans to students by banks or schools. If a student defaults, the government repays the lender. There have been these developments here recently: HEW officials suddenly closed the Guaranteed Student Loan office in Dallas and audited the books for possible funds misuse. Four loan collectors, including a supervisor, were fired from the Dallas student loan office several days later. Officials said they found evidence of.

"improper representations and tactics in the collection of funds on defaulted student loans." The Texas attorney general's office has filed suit against a number of proprietary private and for profit schools in the state, alleging more than $200,000 in tuition refunds is due students who had received government-backed loans. A private collection agency, which was used by the government in some cases, has been placed in receivership. A state attorney general's task force, the Internal Revenue FBI, HEW and U.S. Customs officials have jumped into the investigation, which now includes the Texas Education Agency. Investigators say they believe some "defaulted" loans were actually repaid by students, but the money never found its way back to the government.

It dis DALLAS, Tex. (AP) State and federal officials are investigating evidence that money owed on defaulted student loans was collected but never turned over to the government. The loans were part of the U.S. government's Guaranteed Student Loan program in Texas. Estimates by state officials on the amount of money involved in Texas range from $800,000 to $8 million, and while the scope of possible wrongdoing is not yet entirely clear, it is possible there may be violations elsewhere.

Officials of the U.S. Department of Health, Education and Welfare's Office of Education say there is no indication thus far that the problem extends beyond the Texas regional office in Dallas. The region includes Texas, New Mexico, Oklahoma, Arkansas and Louisiana. But some officials say the irregularities already found in Texas may be part of a nationwide scandal. Committees Show Little Interest In Opening Probe Of Sub Recovery "'l1 WASHINGTON (AP) Congressional committees investigating the Central Intelligence Agency show little interest in opening full-scale inquiries into the partial recovery of a Soviet submarine from the bottom of the Pacific Ocean.

Public disclosure of last summer's highly classified operation raised few questions about the legality of the CIA's attempts to raise the diesel-powered sub. Deep sea salvage operations in search of another nation's sunken vessels are acceptable under international law once the ship is given up for lost. Meanwhile, NBC-TV said American and British forces once recovered electronic gear from a Soviet aircraft which crashed in the North Sea and American personnel recovered electronic equipment from a sunken Soviet vessel in the Sea of Japan and a nuclear weapon from a Russian airplane that crashed in the Sea of Japan. The publicity focused on the Soviet sub Fowler Defeats Vance, 64-40, For Key Democratic Party Post built for the project by billionaire Howard Hughes. The Glomar Explorer, an expensively equipped 618-foot recovery vessel, is berthed in a private dock in Long Beach, Calif.

A huge barge also used in the project and capable of going underwater to insure secrecy is in port at Redwood City, Calif. The Redwood City fire marshal said he wants to make a safety inspection of the barge. "If they've been fooling around with nuclear warheads, I don't want to take any chances that anything might happen while the barge is moored here," said Fire Marshal George Asvos. In Washington, some senior members of Congress said they had been fully briefed in advance on the CIA's recovery operation. However, Sen.

Stuart Symington, a veteran member of both the Senate Armed Services and CIA oversight committees, complained that he was never informed. members are from the big states with California and New York each, adding six for a total of 18 apiece. The 360 members will have 351 votes with the only fractional votes being cast by members from the Virgin Islands, the Canal Zone and Guam. The committee previously had 303 members with about 240 votes. $350,000 -AP Wirepholo her into 14 months of sexual therapy on his office couch.

The award followed an eight-day Supreme Court trial on a $1.25 million malpractice suit. Story on Page 19. Chief Registrar Sworn In Circuit Judge Richard Emmet ad- just two weeks after the previous ministered the oath of office this registrar, Mrs. Sarah Jackson morning to AI Jeringan, the new O'Mary, pleaded guilty to charges chairman of the Montgomery 0f false pretense involving county County Board of Registrars. The funds, ceremony in Emmet's office came Kissinger May Meet Gromyko For Report school closes, is entitled to a refund.

But officials say many students have not received refunds. Texas Atty. Gen. John Hill says that when some schools closed, government collectors came after the students for repayment, even though the students had not received their refund from the schools. Hill's task force says proprietary schools in Texas may owe 'students as much as $3 million in refunds.

HEW says 7.7 million guaranteed student loans, totaling nearly $8 billion have been made since 1967. HEW is responsible for about half this amount, with state agencies backing the remainder. HEW says the amount in default is expected to reach $202 million by June. The default rate is expected to go over 11 per cent this year and 14 per cent next fiscal year, HEW officials said. Journal Photo by Jerry Smith Haaretz said Israel had made a new proposal offering to return the oil field in exchange for a stronger no-war commitment from Egypt.

But the reported proposal did not include return of the Gidi and Mitla passes. A communique issued after the long cabinet meeting did not resolve the difference between the two reports. It said the cabinet "decided to authorize the ministerial (negotiating) team to continue the talks with the secretary of state in accordance with the decisions of the cabinet, striving for a positive conclusion to the negotiations." Kissinger returned to Jerusalem Wednesday night after a visit to King Faisal of Saudi Arabia and was going to Aswan, Egypt, today for another session with President Anwar Sadat. U.S. officials said the gap between the Israelis and Egyptian positions was still wide, and the next few days could be critical for the negotiations.

"It's all over. There will be no match and there is nothing else to do," Fischer said, according to International Chess Federation FIDE bureau member Florencio Campomanes of the Philippines. He'said Fischer called from his home in Pasadena, confirming predictions here that he would skip the match which had been set to begin June 1 in Manila. Fischer said earlier he would not defend the title unless both of his proposals for changes in the scoring system for the title match are accepted by FIDE at a three day special congress which ends here today. The congress on Wednesday accepted one of Fischer's demands for an unlimited number of drawn games with the title going to the player who reached 10 victories but it rejected a change that would let Fischer keep the title in event of a nine-nine tie.

The developments virtually insure that Karpov will become world champion by default unless Fischer backs down. Campomanes quoted Fischer as saying the decision of the congress was Campomanes said he had received a letter from Fischer before the FIDE meeting saying he would be "calm and satisfied''; no matter how the vote came out. Campomanes said he. planned to visit Fischer in Pasadena in the next few days but denied he would make another appeal appeared through collectors, collection agencies or in government offices, they say. Investigators say they believe some methods used to collect past due loan payments may have violated Federal Trade Commission laws.

Samuel Dunbar, 22, who dropped out of a private business college, told the Dallas Times-Herald that a man posing as a sheriff's deputy came to his place of work and threatened to put him in jail unless he paid. Dunbar's case was only one of 10,000 handled by Collegiate Recovery and Credit Assistance Programs, a collection agency placed in receivership after allegations that it failed to forward 1200,000 paid by students to colleges or the government. Several of the fired workers in the Dallas student loan office were former Collegiate Recovery employes, HEW officials in Dallas said. General Motors To Increase Production DETROIT (AP) General Motors said today it is increasing production at three plants in the second quarter, reducing indefinite layoffs of hourly workers by about 3,600 between April 14 and June 2. Together with production increases announced last week, open-ended worker layoffs will be reduced by 10,500 in the April-June period, GM said.

In addition, GM said it will operate all its assembly plants next week and the following week, except for the medium-duty truck lines at the GMC Truck and Coach Division in Pontiac, which will be down for a week beginning March 31. GM said 2,200 workers in Pontiac will be on layoff for that week. GM has two assembly operations shut this week and 4,100 workers on temporary layoff. The production changes for the second quarter will leave 127,000 of the auto giant's 400,000 hourly workers on indefinite layoff. Currently, GM has workers on open-ended furlough, including 10,500 at component plants which were disclosed for the first time today.

A GM spokesman said layoffs may be reduced further in the second quarter at component plants because of production increases. He added, however, that there might be additional layoffs at other plants, although the firm does not anticipate any at the present time. 100,000 overrun by the North Vietnamese in January. The seven provinces total about 13,000 square miles, a fifth of South Vietnam's total area and a territory slightly smaller than Massachusetts, Connecticut and Rhode Island combined. The population of the seven provinces totals about 1.7 million, just under 10 per cent of South Vietnam's total.

Hundreds of thousands of these are fleeing from Communist control and will put an added strain on the Saigon government's already-huge economic burden. President Nguyen Van Thieu in a five-minute radio address today acknowledged the abandonment of Kontum and Pleiku only. He said they were given up without a fight because government forces in the highlands were outnumbered 4-to-l and because of the limitation of American aid. Thieu charged that North Vietnam had launched a general offensive across South Vietnam and committed 19 divisions (about 115,000 men) to it. He said Hanoi had sent five of its eight strategic reserve divisions across the border in January and February to join this force.

Thieu's government announced the nightly curfew in the Saigon area had been advanced two hours, from midnight to 10 p.m. "because of the present emergency situation and security requirements." It was the first such extension of the curfew since the big North Vietnamese Eastern offensive in 1972. But some South Vietnamese officers said it was a precautionary measure and that they saw no threat of an immediate major attack on the capital. Hundreds of thousands of refugees were streaming along the roads leading out of the provinces being given up and those adjoining. There were no reports of any attempts by the North Vietnamese or Viet Cong to interfere with them.

Highway 1, the country's main north-south road along the coast, was jammed south of Hue as frightened civilians made the 40-mile journey to Da Nang, the country's second largest city. U.S. officials said four American government employes working in Hue had been evacuated, but four American civilians there had not been located yet. AH South Vietnamese military forces were reported out of the towns in the abandoned highland provinces. But newsmen in the area reported that the troops were supervising the civilian evacuation and maintaining order along the crowded roads.

Military and civilian cars and trucks were moving bumper to bumper into Cheo Reo, the capital of Phu Bon province. Residents of Cheo Reo joined the exodus, anticipating that their province would go soon. operation made it seem likely that plans to go back for the most valuable items, believed still on the ocean floor, would be abandoned. About one-third of the vessel was raised, but this did not include communications codes and atomic warhead missiles, military sources said. The submarine was found to be in four or five pieces on the ocean floor, according to today's Washington Post.

The Post reported that one unnamed source said the portion of the submarine successfully recovered included part of the conning tower where the submarine's missiles were housed. The newspaper said this indicated that at least one of the nuclear missile warheads may have been salvaged. The Soviet G-class submarine went down in 1968 in of water about 750 miles northwest of Oahu, Hawaii, with the loss of 70 men. The recovery operation was carried out by the Glomar Explorer, a salvage ship proposed Equal Rights Amendment to the Constitution. This could knock out such major contenders as Chicago and Miami Beach, and narrow the likely site to Los Angeles or New York.

The national committee is meeting for the first time since it was expanded to 360 members at the party's mini-convention in Kansas City last December. Many new She's Awarded Julie Roy, a San Francisco store clerk, has won $350,000 in damages from a prominent New York East Side pwychiatrist, Dr. Renatus Hart-ogs, who was convicted of coercing NEW YORK (AP) Akzona AlUi Chal Alcoa Am Airlln Am Am Am Am Bds Can Cyan Motors Am T4T Babck Best Fd Beth Stl Boeing Borden Caro Pw Celanete Chmp Int Ches Oh Chrysler Coca Col Cole Pal Delta Air Dow Chem Duke Power DUPont Cas Air Lin Eas Kod Eaton Esmark Enon Firestone Fla Pow Fla PwL Ford Ford McK Gen Dynam Gen Elec Gen Foods Gen Mills Gen Mot Gtn Tel El Ga Pac Goodyear Grace Greyhd Gulf Oil Hercule Honywell IBM Int Harv Int Pap Int T4T Midday stocks Hifb Low Last UVt 13V, 13V, 9 9 38 38 38 8 IV4 J1. 39 39 39 32 32 32. 25.

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The radio1 said the cabinet met for 10 hours Wednesday and decided to tell Kissinger it was sticking by its original offer to withdraw its troops on the Egyptian front only about 30 more miles. However, the influential newspaper WASHINGTON (AP) Donald Fowler of South Carolina, an ally of Democratic National Chairman Robert S. Strauss, won a key party post today in a bitter inter-party battle marked by charges of pressure by both sides. Fowler, backed by most party regulars, unseated Robert Vance of Alabama as president of the Association of State Democratic Chairmen. The vote was 64 to 40.

The post carries with it a seat on the party's 25-member executive committee. Fowler acknowledged he was a friend of Strauss but said, "I am not his puppet, I have never been and I never will be." Vance, who was supported by most liberals among the chairmen, made clear he felt that pressure from national party headquarters had been used against him and stressed his independence and his success in winning state chairmen and vice chairman voting membership on the party's national committee. The Democrats also were renewing their battle over the extent to which antidiscrimination rules will be applied to state and local party affairs. That question and the contest between Fowler and Vance overshadowed other official business at meetings of the executive committee today and the party's 360-member Democratic National Committee on Friday. Other business includes the formal call to the 1976 national convention.

The anti-discrimination issue arises again because of dissatisfaction by blacks, women and some of their reform allies with the decision to limit party reform rules to the election of state party officers, national committee members and presidential convention delegates. That decision was reached in January by a group called the compliance review commission, which is supervising state efforts to comply with the reform rules. Mayor Richard G. Hatcher of Gary, a member of the commission, was scheduled to ask the executive committee to overturn that action as inconsistent with the order of the 1972 convention that the reforms be applied to "all party affairs." If unsuccessful, Hatcher was expected to take it to the full national committee on Friday. The party's resolutions committee is being asked to approve a resolution that would bar the 1976 convention from any state that has failed to approve the Talks Collapse NEW YORK (AP) Talks to end a four-day-old strike by the Committee of Interns and Residents against 22 private and city-run hospitals collapsed today when the League of Voluntary Hospitals broke off negotiations.

William J. Abelow, executive director of the league, said, "We are absolutely convinced we have reached the end of the road in our ability to deal with these issues any longer in this form of negotiation." He said that at 3:30 a.m. today the league made its last offer, which was rejected by the CIR. Dr. Richard A.

Knutson, president of the Committee of Interns and Residents, said the doctors rejected a second offer by the hospitals because it was a "melange of words that had no guarantees" that the staff physicians would get shorter working hours. Fischer Refuses To Meet Soviet For Chess Title BERGEN, Netherlands (AP) World chess champion Bobby Fischer said today he will not meet Soviet challenger Anatoly Karpov in a scheduled $5 million title match, a chess official reported. U.S. And Jordan Sign Wheat Pact AMMAN, Jordan (AP) The United States signed an agreement today to supply Jordan with 20,000 tons of wheat in addition to a similar amount delivered last month, King Hussein's government announced. Under the new agreement, Jordan is to pay $6.8 million for the 40,000 tons.

Payment will be over 20 years at 2 per cent interest for the first two years and 3 per cent for the rest, a government spokesman said. Army Drops Charges FRANKFURT, West Germany (AP) -The U.S. Army today dropped charges against a first lieutenant who refused to obey an order to cut his long hair. The Army said it called off the trial of 1st Lt. Matthew R.

Carroll, 27, of El Paso, after he offered to leave the service on an honorable discharge. The Army also agreed to give him $3,600 severance pay and let him continue to wear his hair long during the three weeks he is being processed out of uniform. KaisAlm 22V, 22 22 Kraft Co 38 38 38'. KresRes 25 25 25 23 23 23 LigfMv 31 30 30V, LockHdAir 6 6 641 Loews 20 20 Marcor 20 20 20' MeadCp 15 15 15' MinnMM 52. 52 524 MobilO 40.

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