The Commercial Appeal from Memphis, Tennessee • 19

1 I 1 vw 9-jr- vtrrP7-rtaipV -r-Sr i I Jim's 'V W- -vT-Si -a -V i THE COMMERCIAL APPEAL PAGES 19 TO 26 PAGES 19 TO 26 MEMPHIS TENN WEDNESDAY MORNING JULY 14 1971 Pass The Ice Cream 4 Indicted On Charges Of Fund Misuse Vi Donelson Cites Spending Study ply transferred some of the money In Sarullo's accounts to account the indictment said Each count bf the two indictments carries a fine of $10000 and imprisonment of up to five years or both upon conviction Memphis Bank ft Trust Co along with Sarullo Lambert Trust by the Morgan Trust Co of New York The next day the three men gave Solomon a check drawn on the Security Investors account for $69500 the indictment says Since the account did not have sufficient funds to cover the check the indictment said Solomon held the check and without requiring high of 98 degrees at 4:40 pm was the hottest temperature recorded at Memphis International Airport so far this year But it was still six sizzling degrees short of the record high for the date of 104 set in 1954 The thermometer hovered above 90 degrees from mid-morning until 10 pm when it dipped to 89 the National Weather Service repented The low was 78 degrees at5 am Driven by the heat Memphis residents turned to their Ice cream and air conditioners in record numbers Carl Crawford Memphis Light Gas Water public relations director said Memphis usage of electricity at 4 pm yesterday set an all-time record He said 1558051 kilowatts were used the equivalent of 15 million light bulbs going at once between 3 pm and 4 pm A harried manager of an ice cream store on of all streets Summer complained that his cash register broke down and out of vanilla and down to one gallon of The previous high recorded this year was 97 on June 25 The electricity record was set during the same period conspiracy to misapply the funds and credits of the bank for their own use and benefit The joint indictment of the four men claims that on or about Feb 17 1969 Sarullo Lambert and Veazey opened the account in the name of Security Investors at Memphis Bank Trust Co The following July 22 the indictment says Solomon issued a credit memo of $15000 to the account (No 083-054) to avoid detection of the misapplication of funds caused or issued a corresponding debit memo to the general ledger account of the The same type of transaction this time Involving $38000 was completed on Sept 9 1969 the indictment says proper payment released the' and Veazey were named in a securities to Lambert Sarullo 1 suit arising from the stock frauds in December 1969 That suit was filed by a St Louis brokerage firm Stifel-Nicolaus ft Co It asked for damages of more than a million dollars and Veazey The Ilk: indictment naming only Sarullo and Solomon claims that from an indefinite period until Dec 3 1969 Sarullo maintained two in personal accounts at the Mem- brokerage fl said phis Bank ft Trust Co (Nos jt 351-814 and 387-452) while Sol- J8 AfMAN La a nnrsnnnl tvtfMifi? 1 lCS Ol ftllC StOCK BltSr it WU account' to bank The suitla No Q22-454 'till pending By MICHAEL LOLLAK Four Memphis men were indicted by the federal grand jury yesterday on a total of 14 counts charging them with misapplication of at least $308404 in Memphis Bank Trust Co funds Named in the indictments were Garry Solomon a former assistant cashier of the banking firm and Salvatore Sarullo James Barham Lambert and John Gary Veazey Jr Bank sources said last night the four men had diverted much more than the $308404 but had paid back all but that sum since the offenses occurred They said the misapplication is the first involving an employe in the history- Sarullo Lambert and Veazey were jointly named in four of the indictments which charged them with misapplication of bank funds while engaged in investment of monies in corporate stocks bonds mutual funds real estate and mortgages The men were accused of carrying out their transactions in the name of a securities firm named Solomon was also named in the four Indictments as an agent of the bank having certain powers over bank funds and securities Sarullo and Solomon were named alone in the 10 other counts which accused them of By DALE ENOCH An unreleased study found that city taxpayers had paid 23 million dollars more than their share for local services City Councilman Lewis Donelson III said yesterday Mr Donelson said he had been told of the report but had not seen it and could not verify its findings He declined to name the person who had made the study but said its results would eventually be made public He made the statement in arguing against the proposed formation of a nine-member committee of city and county officials to study inequities in the funding of joint agencies and departments A $34000 study of the funding problems agreed to privately and approved formally by the City Council last week has run into opposition from county officials It was to have been paid for on a 50-50 basis by the city and county Formation of a committee would produce only and would not lead to any solution to the continuing controversy Mr Donelson said is going to take the time on that committee to dig in and get the he said arrive at anything by just sitting there across the table and looking at a couple of financial The indictment claims that Memphis Bank ft Trust later until Dec 3 Mtmon Issued fidelit nd insurer 9S to Sarullo sac- A i 1: credit memos 2 1970 that April charging keil AIsmoSajI 4ka had diverted the counts totaling $300030 avoid detection funds of the misapplication Solo-jmen on inull CnliMMAN more uian Salomon in collusion with It asked the bond lnsur- Then on Nov 18 1969 Sarullo Lambert and Veazey "caused 2000 shares of capital stock of the Resalab Inc to be entrusted to Memphis Bank ft Trust Co by causing a bank draft to be drawn in the name of Security Investors and delivered to (the bank) by the Mercantile Trust Co of St Louis the indictment says On Nov 20 1969 it said the mon caused or issued corre- orj tje united States Fidelity sponding debit memos to the Guaranty Co of Baltimore genera! Wger account of the for 1308484 in damages That bank styled Collections in SUjt stili pending Transit Other it said A spokesman for the United It also says that Solomon is-States office said same type of transaction was (sued credit memos during the after negotiations with the sus-performed this time involving period to his own account attorneys that the four 1000 shares of Hubbard Real whi'e issuing corresponding men would surrender them-Estate Investments and deliv-debit memos to ac- selves to federal marshals by ered to Memphis Bank ft counts Those transactions sim- today OPEN AT After several delays the Interstate 255 segment from Union to Chelsea will open today with temporary signs to direct motorists Erection of permanent signs will start shortly highway officials said Because of the way interchanges ere designed at Union and Madison motorists from downtown or crosstown who want to go south on 1-255 should use Union and those who want to go north should use Madison The leg of Interstate 40 from the midtown 1-255 interchange to Danny Thomas also opens today Music Speaks And All Listen Rainey Attacks Loeb Administration decisions which he said have led the city down the wrong path And he promised improved conditions for Memphis senior citizens Mr Donelson said he could not why the county court which is always harping about the inequities will not approve an independent City officials should "urge the county court to go ahead and approve this during a meeting arranged by County Commissioner James Moore on the subject for eraly Boushe who also had announced previously filed qualifying petition yesterday with the Shelby County Elec-ton Commission for the same seat About 33 attended the lunch- Mr campaign chair-eon at Admiral Bcnbow Inn man Doy Daniels Jr named Chris Rehkopf paper company! several persons to campaign executive was master of cere-( posts including Jerry monies and it is expected that! Jones treasurer Ben Tacker Quality service has become the in city government during the present administration Squire Tracy Rainey charged yesterday at a luncheon meeting of prospective campaign workers and guests A recently announced candidate for mayor Mr Rainey By KLINK COOK The streeties and the straighties peacefully confronted each other last night at the Overton Park Shell concert and at least a portion of file life style won some converts Violinist Richard after-intermission performance held a goodly number of the subculture enraptured he will be Squire Rainey's Jr press secretary Charles tomorrow (the study) Is lashed out at Mayor Henry campaign chairman as he was Griffin ward and precinct (going to take a long time any- Locb on subjects ranging from in the 19G8 County Court race (coordinator and Michael Ker-the sanitation department to County Court Chairman nell college coordinator- Charles Baker Squire Stanley election commission Dillard and County Atty pollution at McKellar Lake He promised to from appointive nT thl SiaW-lSStSn those who have been party to hand Squire Rainey lhe council at large Positron Mayor Henry Lceb said he planned to promote discussion of further consolidation of city and county functions as soon as the controversy over local hospital funding has been resolved On another subject the council agreed informally yesterday to request police to crack down on gravel trucks which are overloaded and lose gravel on city streets A prospective candidate for mayor Slater Hollis sent out letters this week in which he Charles Monger Is expected outlined his principal guide-i announce Friday as an at- lines in government He listed rge council candidate and his three keys as God fiscal bas celled a press conference uvhtna ami imHvMiiai fra for 4 pm at the Sheraton Mo- savings and individual free- Murder Indictment Quashed By Jury dom Mr Hollis an attorney and diet John Farris Jr 49 of 1209 'economics professor founded Tutwiier on first-degree muj-Christians Inc and several I and white com- tor Inn He said he will campaign on the need for estab- One longhair a peace symbol on his tee shirt remarked trip to that (violin music) would be An estimated 1500 persons went to the second free concert More than 200 of them were king hairs They had come some freely conceded because a promoter of rock concerts had threatened to pack the shell with them The hope that the shell would be stvffed with hair was voiced by Charles Moore of The Organizers Inc Thursday at a Memphis Park Commission meeting The commis-sion had initiated a require-jment that concert sponsors (pay the cost of police patrols (and Mr Moore failed to get it rescinded pastor of Holy Ro- Bishop Dozier was installed asj Mr Young said backstage at Stayed On After Intermission Phots taxpayer groups He is being der charges Mr Farris owner of Two And One Grill at 1373 promoted as a possible candi-date by his close friend Squire Billy Ray Schilling a businessman and Memphis and Shelby County Planning Commission chairman said he plans to announce within the are ths greatest litter ers we said Councilman Robert James Councilman Downing Pryor an automobile dealer who raised the issue said the business must be excellent We put in a new windshield about every two weeks after a tire has picked up a rock and thrown 'L Foppenheimer North Thomas was charged in A Relaxed Group Of 'Converts' In other developments in the the June 20 slaying of Solomon McLemore 18 of 1305 Nichols coming race former next few days whether he will Mr Farris testified that the sheriff william Morris Jr 'seek the District 2 dty school Diocese Figures board position Mr Schilling a sales representative for Missouri Portland Cement Co made an unsuccessful cam- is holding organizational meetings and is expected to announce in about two weeks Qualifying petitions are still being circulated in behalf of paign for sheriff in 1964 Universe Runs On Sure Laics Gad Ordained By BILLY GRAHAM restaurant was frequently burglarized and that he was holding a stiliwatch the night of the slaying He said McLemore broke into the restaurant and he told McLemore to lie on the floor or he would kill him Instead McLemore drew'fion back a metal bar and Farris 1 James Keep shot at him three times with a who previously announced as 16-gauge shotgun he said He an at-large City Council candi-did not know how many times date said yesterday he will run ByLINDLEYRICHERT A Walsh The new Catholic Diocese of sary Catholic Church and its leader during services in (intermission was a little Memphis rd the Diocese of (Jerome Sweeney managing the Mid-South Coliseum The (shaky out there at first 1 real-Nashville took the final step partner of the Memphis office diocese contains 10682 square jly didn't know what to expect toward splitting the two1 of Harris Kerr Forster ft 1 miles west of the Tennesseethe way things in the papers' dioceses administratively yes-(Company Certified Public Ac-( River The Nashville diocese were I was ready though I terday by dividing an estimat- countants covering the remainder of the brought my own kazoo' An 1 1 1 commission spokesman yesterday reminded prospective candidates that the deadline for filing petitions is noon on Saturday Aug 7 Any requests for withdrawal must be received by noon of million dollars in as- ed 115 sets A five per cent assessment state has a Catholic population of the parishes In the new of 48641 Bishop Dozier said he is ea- Andy Ledbetter of the Memphis American Federation of he hit McLemore I for Position 5 City Judge Bev- Aug 14 Bishop Carroll Dozier of A MiHthnl chancery office will be Action Please Beautification Promotion Questioned muui uaa jurisdiction SnneiRiver16 east ofMorris Group Presents MHA acnde Development Plan For Beale He was quick to point out that the 52 million dollars The Noel Gilbert came and orchestra conductor said they're enjoying Before the first tune-up sound twanged young long-( hairs went backstage and vol- I am beginning to wonder if the city Is sincere in all its promotion urging residents to make the city beautiful I moved here recently and was much Impressed with the mayor's television appearances and promotion in the newspapers to beautify the city To do my part I began cleaning the alley between Glenn and Driver Three or four other men also worked on the alley We piled all the rubbish tree limbs and debris we gathered in piles along the alley Then we called the city and were referred from one department to another This all started about three months ago Finally we were told the alley crew department would pick up the debris That was three weeks ago and still no action Can you help? -ANDREW TAYLOR puts the new diocese in a deficit net worth position of $200000 and that a fund-raising drive in the spring is likely The assets however do not include an estimated 20 million dollars In real estate properties because the untaxed facilities are not depreciated and appraised It was By JAMES DENLEY A preliminary plan for' restoring the heart of the Beale Street urban renewal area to a tum-of-the-certury flavor was presented to Memphis Housing Authority members yes-juntecred to hand out pro-terday grams At the gates they ex- No decision on a developer for restoration dubbed the chan8ed typical Light by is expected for several months wltJj The proposal yesterday the first made to MHA was advanced Establishment concertgoers as by Beale Street Blue Inc a coalition of local busi-1 About 44 per cent of stock-nessmen and investors headed holders are black Mr Morris they entered The concert opened with the overture to the Merry Wives of I am a ptofessional man I have tried to believe is Christianity but it is too pat too simple I believe that God works as methodically as the Gospel indicates WJS Where did you get the idea that God works I His laws (s 0 etimes called natural laws) are pat The tide tables predictable years in advance are quite pat Sunrise and sunset run on a neat schedule and never Vae Bible says: "The law of the Lord is perfect converting the soul Why should you think it strange that (as you say) established laws should apply to the soul of man? You say you are a professional man If you are a lawyer court procedures are pretty aren't they? If you are a doctor you would be the first to claim that medicine is an exact science and is pretty Why would you an intelligent man assume that God runs His universe any less methodically than you do? If you're looking for an excuse to be an unbeliever surely you can come up with a better one This one is as weak as it is illogical The Bible says: "The fool hath said in his heart there is no i Also Included in the assets by former sheriff William said is 35 million dollars in monies Morris Jr I think that is indicative of Windsor It received a warm reception from the serious symphony fans By the time Mr Young had gone through Concerto in Minor by Bruch those at the shell on the pro We have a little of the New the tyP cooperation we antici-Orleans flavor We have a lot Pftev (from the black entertainment" Mr Morris nM the younger Mr of proposed plan after uamsaid due from the 27 parishes in the new diocese Total liabilities amount to 54 million dollars Bishop Dozier reported which includes four millions in shortterm debt and 14 millions in parish and institutional dare cheered privately with MHA I Mr- Morris said the group spent about $25000 on research meeting staffers develop- vcKtfd 1 end listened and applauded an deposits and presentation including would have a He said the financial situa-j where people could come -tion will not result In closing I Memphis and could hear some entertainment any facilities in his 43000- Mace 30-minute film urging msnt nf n1 me to mentor Beale Street as and musical of the original art scores creat-center- He said film The music had become universal language Action Please contacted Maynard Stiles administrative assistant in the Department of Public Works He promised your complaint will be given immediate attention Action Please will check Mr Stiles said the city is sincere about beautification efforts and encourages community clean-up projects such as the one you ed Persons who clean an area and want the debris removed should call 527-6611 and make their request to City Beautiful or the Sanitation Department Mr Stiles said The people living at 1380 North Willett are keeping a bunch of hogs behind their house The stench is unbearable especially In the late afternoon I called the health department three times last year and once this year and the man is still raising them Please see if you can help us member diocese but that the figures three or four years of Workers Leave -Blame Heal In Warehouse Between Glenn And Driver The Trash Is Waiting -Staff Phot To help direct the financial affairs of the Memphis diocese Bishop Dozier yesterday announced the appointment of James McWillie as administrative officer of the diocese and the creation of a Council of Administration Mr" McWillie whose appointment is effective immedl The health official to whom your com- ubject was referred found the subject partici-ed and born pants Included entertainers Samuel Null MHA associ- Thomas Sammy Davis ate director said he did Iaaac Hayes know when MHA will adver-1 1e5e 8 8 deM of tise formally for development "terest among national figures proposals He earlier said becoming involved Mr three other firms are consid- Morrta to be seriously competing Land planning for the pro- for the redevelopment contract jposai was done by Phillip for Beale Street between Sec- Morris of Atelier One a Mem-ond and Fourth phis planning and architectur- Mr Morris whose third firm the former sheiff said two-year term as sheriff ended The two Morrises are not relast year and who is consider- iated ing a race for mayor is presi- Nightclubs restaurants dent of Beale Street Blue small shops fend other retail Light A Gilliam Jr is firms are planned in the blue vice president light core of Beale Street Others involved In the corpo-j MHA awarded a contract ration include Negro business-1 last week for demolition and men George Lee an associ- site preparation of an area be-ate of the late Handy and tween Main and Fourth sur- told such a paper Is available Can you tell me where? -MRS list of names and addresses of publications printed in large type can be obtained at the Memphis Shelby County Public Libraries For information call ately haa for the past 26 years a vice president of Mur- been About 103 warehouse workers at I vers and Pond Piano Co at 3465 Bayliss walked off their jobs after lunch yesterday complaining that it was too hot to work company officials said Henry Heller vice president of the company said he understood the walkout was not authorized by the United Furniture Workers of America (AFL-CIO) which represents the workers Mr Heller said the warehouse where keys and other piano parts are produced is not air-conditioned but is ventilated- by a number of celling fans plaint anything but boring He issued orders to have the hogs removed They were gone within nine days The duplex at 2942 Hale burned several months ago Old mattresses burned furniture and other trash have not been removed The area is clean now The burned furniture and debris were removed after orders were issued by a health department official who investigated your complaint Q-I would like Information on a paper or maprinta printed In lay type fog elderty prowems Filed of 284 Hewlett was charged with murder yesterday in the fatal stabbing of Tommie Lee Watson 24 of 4956 Jonetta about 9:45 pm July 5 City Court Judge Bernie Weinman bound him to the Shelby County Grand Jury and set bond at $500 Police said the stabbing was the result of an argument over a woman McGowan has been in Baptist Hospital for treatment of a badly cut arm dock Acceptance Memphis Members of the new council are James Merkle president of Union Planters National Bank Edward Barry Memphis attorney Judge Harry Pierotti Msgr Paul Clunan pastor of St Louis Catholic Church Msgr John Action Please invites questions and complaints of aU kinds The name and address of each correspondent must be known to The Commercial Appeal hut vM be kept confidential os request Address all letters to Action Please In care of The Commercial Appeal $95 Union Memphis Tens 38101 In emergencies can 336-8311 Sat iSS w-v- Vi rounding the blue light area Another area from Danny Thomas to Fourth already is under contract a staunch supporter of Beale Street and A Gilliam Sr a Memphis Light Gas ft Water Division board member.