The Daily Sentinel from Grand Junction, Colorado • 3

9 i A. Thitrsiigy. July 12, 198? T) Daily Sentinel, GrfN Junction. Colorado Pag 3 coloradl Current earnings rate at record high PUC says part of Bell rate hike for dividends DENVER (AP) Analysts for the Colorado Public Utilities Commission say almost 44 percent of Mountain Bells record-setting $127.4 million rate increase request would be used to help pay higher dividends to stockholders of the parent American Telephone Telegraph Co. Commission Executive Secretary Harry Galligan said the phone companys latest rate increase request includes $56 million to boost the earnings rate of stockholders from 133 to 18 percent Galligan said the current earnings rate of 13 3 percent is an all-time high for Mountain Bell.

The increase to 18 percent is the highest earnings' Mountain Bell had decided to hold the investors earnings rate at its current level, the company probably would have asked for an increase of about $70 million to cover its increased costs from inflation and, other factors. Mountain Bells latest rate hike request, announced April 12, would jump the basic cost of "no frills private-line residential service in Denver from $8 15 to $11 11 a month. The request also asks that the cost for the one-time installation fee for telephones customers pick up at phone centers and plug in themselves be increased from $55 40 to $77. rate requested by Mountain Bell since Ive been here." Galligan, who has worked for the PUC since 1968, said. Under state law, PUC regulates the amount that utilities can charge consumers.

The PUC also determines the rate of return to which company stockholders are entitled. A Mountain Bell spokeswoman, Cyndi Evans, said an increase in stockholders earnings is necessary "in order for us to keep getting (stockholders) money to st ay in business. We need to have a rate of return that is attractive to investors. Mountain Bell is a subsidiary of PUC chief financial analyst Jim Richards said that if For movie studio, hotel Sentinel wire service news digest Developers want to buy Old Max 5-year-olds death after dental visit still a mystery COLORADO SPRINGS (AP) Relatives of a 5-year-old boy who died six days after he collapsed of a heart attack in a dentists chair are still trying to figure out how the tragedy could have happened Corey Hale died Tuesday at Penrose Hospital here, after doctors turned off the childs respirator Six days before, he collapsed in a chair at the Childrens Dental Chalet here he had 11 cavities filled. Fire department paramedics who rushed Corey to the hospital said he had suffered what appeared to be a heart attack but theorized it might have been a severe allergic reaction to medication Coreys dentist.

Dr. Jay Morris, could not be reached for comment Tuesday. The drug used was chloral hydrate, a sedative, according to El Paso County Coroner Dr. David Bowerman. He said that after an autopsy, he concluded the child died of cardiac failure because of hypersensitive reaction to a drug chloral hydrate.

The childs mother, Carolyn Hale, 21, said, "He was just allergic to peanut butter, that was it It was just me and him," continued Hale, a welfare recipient who does not work. We skated on Saturdays and he bowled a 19," she remembered. Doctors waited until Coreys father, Michael Blunt, flew to Colorado Springs from Georgia before turning off the childs life-support systems. Two separate readings of brain activity had shown that the child was clinically dead before thal He was gone. He was really dead Thursday, Hale said.

If there would have been any hope, 1 wouldn't have let him go. cism of the proposal itself but cautioned Cutter that approval by the full Legislature would be needed before Old Max could be sold. Another legislative panel is considering proposals to renovate the old prison for expanded housing of inmates. As envisioned by Cutter, Old Max which now houses about 120 inmates in portions not closed by a federal judge would become a major tourist attraction. Some cells would be remodeled into hotel rooms; other portions of the prison would be used as office space and as a sound stage for the filming of Grade movies, he said.

Cutter said the total project including the hotel and monorail at Royal Gorge would cost about $200 million and would provide about 2,000 full-time jobs. Don Goss, executive director of the Canon City Chamber of Commerce, said the chamber supported the conversion of Old Max to some commercial purpose-The interim committee, which is studying a variety of state government issues, also heard testimony Bbout the need for a more comprehensive inventory of state-owned property. Consultants hired by the state said such an inventory was needed if the state was to make sound decisions about selling or leasing its property. DENVER (AP) An ambitious plan to build a movie studio, two hotels and a monorail in the Canon City area wont get off the ground unless the would-be developers can buy the states old maximum security prison, a spokesman for the project said Wednesday. Rex Cutter, president of SRB Productions Inc.

of En-cino, Calif, outlined plans for the proposed studio and tourist facilities to members of a legislative interim committee. But Cutter said the entire project would be stalled unless the Legislature agreed to sell Old Max, which would become the the centerpiece of the development Cutter said he had written to Gov. Richard Lamm, on behalf of the foreign investors behind the proposal, offering to buy Old Max for $10 million. The offer has been withdrawn because of a lack of response from the state, Cutter said, but would be reinstated if the investors were assured the prison could be purchased. If the investors were confident they could buy the old prison, Cutter said, they could precede with negotiations to build a high-rise hotel on the edge of nearby Royal Gorge and construct a monorail that would run from the prison to the bluffs of the gorge.

Legislators on the interim committee voiced no criti MEXICAN FAMILY SAYS CORPSE TAKEN Relatives of a bricklayer who died last February said Wednesday they believe his body was the one unearthed from the cemetery in San Ignacio, a western Mexican village, and mistakenly identified as the corpse of missing University of Colorado professor Nicholas Schrock. The relatives said they discovered Monday that the grave of the bricklayer, jesus Valenzuela, 64, was empty after hearing the news that pathologists had determined the body sent to Denver was not that of Schrock, 42. "We noticed last week that the cross was missing and that the ground appeared to have been dug up," said Alfonso Aland, the bricklayer's brother-in-law. "Then after hearing the news from the United States, we dug up the ground and found the grave empty." LONCMONT MAN SUSPECTED IN SLAYING A 34-year-old Longmont man, a confessed killer, has been named as a possible suspect in the death of a 94-year-old woman whose stabbed body was found in a Larimer County creek on July 9. John William Agrue, who lives next door to the apartment of the dead woman, Orma Smith, was arrested by University of Colorado police last week after authorities said he tried to force his way at knifepoint into a 20-year-old Boulder woman' car on the campus.

Smith's body was found In the creek near a Forest Service access road at Big Elk Creek Meadows, UNION ACCEPTS SAFEWAY CONTRACT Members of the United Food and Commercial Workers Union from four Front Range cities have voted unanimously to ratify a new three-year contract with Safeway stores. The union walked out on strike July 1, but reached tenative agreement within days. About 157 union member from Loveland, Fort Collins, Longmont and Greeley met here Wednesday to discuss the contract and then ratified it unanimously by voice vote. Seniority and job security were reasons for the strike. Details of the new three-year-contract were not immediately available.

Ford calls balanced budget plan a crutch tional product compared to a $66 billion deficit during his presidency that amounted to 4 percent of the GNP. A $100 billion deficit can be managed as long as the trend is down, Ford said. Ford said some pitfalls remained in the way of economic recovery, but said signs of recovery were materializing. Ford appeared at a reception and luncheon at the Brown Palace Hotel on behalf of Wiens, a Republican who is seeking to oust incumbent Rep Ray Kogovsek, of the 3rd Congressional District The district consists of Pueblo, the San Luis Valley and the Western Slope, but Wiens aides said they decided to hold Wednesday's event in Denver to attract more money and more media attention. gress, Democrats and Republicans, who will stand up to pressure groups who want to spend billions and billions of dollars.

Ford said one step toward reducing the deficit would be to stretch out Reagan's proposed five-year plan for increasing defense expenditures. Distributing the proposed $1 6 trillion allocation over six years instead of five would have a very beneficial impact on cash flow and reduce the deficit," Ford said.l favor all the hardware the president wants but we could do it more responsibly over 54 or six years." Ford expressed a calm view of the $100 billion deficits projected for the next two fiscal years by the Reagan administration. The former president said $100 billion represented only 2 9 percent of the gross na DENVER (AP) Former President Gerald Ford, in sharp disagreement with President Reagan, said Wednesday that the proposed constitutional amendment to require a balanced federal budget is a procedural crutch" that wont work. Ford, at a news conference here in conjunction with fiind-raising event for 3rd District Republican candidate Tom Wiens, bluntly criticized the proposed amendment, which Reagan and many other Republican leaders have endorsed. I dont believe it will work," Ford said.

"It will not do what its proponents say it will. It is a procedural crutch it will raise false hopes. Ford, who otherwise expressed support for Reagan policies, said the solution to large federal deficits is not a constitutional amendment but "members of Con Invest in Henredon Quality. Sale Prices, Too! iT fil 1 3 iWO 3 U4 5 I -O'l 4 -i j. On Our Entire Stock Of Henredon Upholstered Furniture O'.

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