Birmingham Post-Herald from Birmingham, Alabama • 1

Birmingham Post-Herald Vol 11 0-No 95 28 Pages Two Sections Monday August 22 1977 largest morning circulation HU1PMOW Miners vote to end strike By Brace Patterson Staff Writer Almost 10000 Alabama members of the United Mine Workers of America voted Sunday to return to work apparently ending a wildcat strike that union officials say spread into the state last week from the troubled coal fields of WestVirginia Only one was heard during a voice vote on a motion to return to work taken at a mass meeting of UMW District 20 at Sumiton Sunday afternoon but District 20 President Lloyd Baker said later that the vote does not guarantee miners will return to work since pickets" from out of state may still be at the mines The strike in Alabama apparently was connected with a two-month walkout in West Virginia and other Appalachian states that has idled as many as 10000 miners Top UMW leadership I to meet in Charleston Va Photo by Dennis HoU strikers did not return to their Jobs- the 1 0-OOO miners present voted almost unanimously to return to work Another photograph appears on page B4 Thousands of minors gathered Sunday afternoon at the Walker County Vocational School where they voted to return to work at the next shift ending a local wildcat strike in sympathy with West Virginia miners After listening to short speeches by Frank Clements a United Mine Workers of America international board member and Lloyd Baker president of District 20 who said the union was in "serious danger" ii Firm picked to audit APC called partisan By Ted Brysst Staff Writer Price Waterhouse and Co the firm selected to conduct a special audit of Alabama Power Co and Southern Services Inc has a number of utilities and energy-related companies among its national clients and has been accused of taking partisan positions to promote the interest of clients Those facts are leading some Alabamian to question whether the state will get a fair shake from the upcoming audit which waa approved by the legislature earlier this year The audit "definitely" will not be colored by the fact that Price Water-house has other utilities as clients according to Paul Pederson managing partner of the company's Dallas Tex office who will be in charge of the Alabama Power-Southern Services audit the essence of our whole ope ration we're independent" said Pederson who wu in Birmingham last week to plan the audit A recent staff report of a US Senate subcommittee however questions the independence of the eight" accounting firms whose client! are the largest and wealthiest corporations in the nation "It appears that the big eight firms are more concerned with serving the interest of corporate management! who select them and authorise their fees than with protecting the interest of the public for whose benefit Congress established the position of independent auditor" the staff report said The report entitled Accounting Establishment" was published in March by the staff of the Subcommit Several hospitalized after destructive motel fire An adoring mother and the rich aoulftil music of black and white Southerners were the first and perhaps moot Important influences on the young Elvis Presley In the first of a series of seven articles beginning in today's Post-Herald writer Jerry Hopkins examines beginnings in Tupelo Miie and follows him through his first unsure years as a teenager in Memphis The first of these biographical articles and two related stories is on page A-ll Bank ethics to be probed United Press Mcnatkasl WASHINGTON Senate Banking' Committee Chairman William Proxmire announced Sunday Us panel will investigate the ethics and soundness" of banking practices in light of Budget Director Bert Lance's financial deal- xmire D-Wia said the investigation will delve into a number of areas compensating and correspondent bank balances loan collateral overdraft policies failure of bank officials to file reports oa borrowings and business ventures and varying interest rates charged different cus- tomersi "The report of the Comptroller of the Currency on Budget Director Lance raises a number of serious questions about both the ethics and soundness of banking practices" Proxmiresaid His statement gave no Indication that the Banking Committee plana to probie Lance's activities The Senate Government Affairs Committee has scheduled the beginning of that Investigation Sept 7 Though the Comptroller of the Currency said last week Lance's complex banking practices did not Involve any criminal wrongdoing Proxmire said the report raised a number of there an understanding that Lance would get a loan from the Ma-nufacuters Hanover Trust Co of New York in return for Lance's bank the National Bank of Georgia leaving 20 per cent of the loan amount in the New York biuik? were neither of loans from Manufacturers Hanover Trust and first National Bank of Chicago fully collateralised or insured with pledged collateral? were overdrafts In sccoiint and that of his family in his own bank larger than the certificates pf deposit on file with the bank and why did the accounts remain interest free for a considerable time? Voyager 2 probe headed for Jupiter United PreM Intenuttail PASADENA Calif -The Voyager 2 space probe to the outer planets was sailing toward giant Jupiter Sunday apparently functioning well despite a snaky start that had scientists worried it might be a failure Voyager was launched from Cape Canaveral Saturday morning and its control taken over by Jet Propulsion Laboratory here after it separated from its launch rockets Oneof the major problems was an apparent failure of the boom that holds the television cameras and scientific instruments to deploy fully after separation Inside Action Line B15 Amusements B6 Ann Landers BIS Bridge MIMMf I lltMMIIMliiS0 BIS Business BIS Classified BT-14 Ctettus Atkinson AS Comics BIS Deaths B7 Editorials A4 Family Bl-2 Foreign News A Heathdiff AS People in the News A 12 Sports AB-10 Tv Today AS Weather Map AS fonday to deal with the wildcat strike which protests recent cutbacks in UMW health benefits During Sunday's meeting Baker and Frank Clements a member of the UMW international board warned that continued striking would have exactly the opposite of its desired effect since health benefits are based on coal production' Baker explained that the amount of money coal companies pay into the benefit fund is computed on the basis of tons of coal produced and number of hours worked by UMW members If there is no money paid into the fund none will be paid out he said Clemente told the mass meeting that pickets who claim a nationwide strike will improve the benefit situation for miners are guilty of Partially as a result of production lost to wildcat strikes earlier this year -coal producers cut their contributions to the benefit funds triggering the cur rent wildcat strike Among proposals the UMW leadership will consider its meeting Monday is one that would assess miners $30 a month to replenish the benefit fund The assessment would Inst until the current UMW contract expires at the end of the year The proposal reportedly has the sup-port of miners in West Virginia who Baker has said are responsible for the roving picket lines that began shutting down Alabama mines last Wednesday Esher has sensed some of the roving pickets of being members of "subversive groups" determined to destroy the UMW Sunday he said the purpose of the mass meeting was to sanity order and decency to our union and put our house in order" Baker said he would prefer to strike over a dismissal or some other legitimate grievance than have someone with a gun tell me what to do" He said miners who stayed off the job were placing the union in danger" and raised the possibility of government controls being placed on the union if the wildcat strikes continued Of the out-of-state pickets who kept as many as 11000 Alabama miners off the job last week Baker said don't need that kind of help and we won't have it" Man is slain at Lake Purdy A M-yeardd man was found shot to death on the banks of Lake Purdy where he was apparently fishing Sunday Investigators are planning to question another man who was wounded in the incident according to Shelby County Coroner Ed Burdett Robert Vandegrift of Rt 4 Birmingham was shot once in the chest and once in the abdomen with a (mm pistol about pm Burdett said Details of the shooting were sketchy late Sunday night because 8helby County Sheriff's Deputies were waiting to question the wounded man who is a possible suspect according to Burdett Robert Smith of Leeds was being bested at a local hospital Sunday but his condition was not known Burdett said He said Vandegrift was apparently fishing but he did not know why Smith was at the lake Dave couldn't find Cashword winner The days" are here again that time of year when it seems to take an Inordinate amount of energy just to roll over and slather on some more suntan lotion So it wu with a great deal of effort that Dave Dollar managed to check out the 138J75 entries to last week's Cash-word Puzzle Contest Alas despite his heroic effort Dave was unable to find a winner so he had to add another $100 to the cash prize for a total of $3300 foi solving this week's puzzle on page A10 To give yourself the best shot at the money check the solutions to Iasi week's puzzle on page B4 first appropriated by the legislature and $90000 set aside by Wallace from rave nue sharing funds Pederson said the audit expected to be finished after the first of the year will have no constraint! although it will concentrate on specific areas that are considered important He said It is too early to discuss the specific areas As for charges in the Senate subcommittee report Price Waterhouse haa issued a lengthy 'statement made by senior partner to the Metcalf committee on May 10 after the committee's staff reported The partner Jobs Biegler maintained that Price Waterhouse is independent and cited several instances when the firm lost clients as a result of maintaining its independence against pressure from major clients The internal policy Biegler said is that firm's responsibility to remain independent for audit purposes will override all other considerations" Regarding the specifie charges in the report Biegler said a United Brands special audit committee found that Price Waterhouse acted and responsibly" In the case An independent committee wee at the time reviewing the General Tire matter and Biegler said he could not comment on details but am confident that this report will reflect that Price Waterhouse acted prudently and carefully in fulfilling its professional responsibilities" He added time we render a report expressing our opinion on a corporation's financial statements our reputation is on the line Accordingly we do not express our opinion lightly" Somebody mi a resident sa spraying water into the section where he used to live Fire trucks from Bessemer Fai field Hueytown Brighton and Lipscomb responded to the 4:30 pm alarm and managed to bring the fire under control about pm a fire fighter said Photo by Bruce Pattereu Mrs Nadine Kennedy lived at the motel according to other residents Motel employes estimated about 60 to 70 per cent of the motel was destroyed tee on Reports Accounting and Management of the Senate Committee on Government Relations The subcommittee is referred to as the committee" because it is chaired by Sen Lee Metcalf of Montana The committee staff claimed that material submitted by Price Water house that the firm is actively involved in a variety of questionable has-takes partisan positions on controverts! issues to promote its own interests the interests of corporate clients and the interests of private business groups It has promoted iti views before Congress state legislatures and regulatory authorities" the committee report said It said one of the firm's partners a director of the US Chamber of Commerce appeared before the Senate Government Operations Committee and the Chamber of Commerce views on regulatory reform which generally represent the views of larger corporations that are often clients of his firm" The report further questions Price Waterhouse practices as a result of failure to disclose "illegal and improper" activities which the Securities and Exchange Commission charged were being conducted by one of its clients General Tire and Rubber Co The committee staff also claimed that Price Waterhouse knew of a $125 million bribe paid by another client United Brands Co to a Honduran official but did not require that the bribe be disclosed on United Brand's financial statements According a listiag of clients in A mas whs aba lived at the motql went to a local hospital for treatment of a possible heart attack brought about by the fire and a woman who lived directly behind the motel was treated by fire medics after the flames knocked out the electricity in the area cutting off a reauacitator she must use constantly Stewart said Much of the motel is used apartments for men who are doing local construction work and their familes a motel resident said Most of the rooms destroyed by the fire were being rented by the month another resident said One man who lived in a section of the motel that had only smoke damage uid a new Pontiac parked clou to the building burned but residents managed to uve another car was one of those real small cars parked close to the building also but the owner here so a bunch of men pit together and we jut picked it up and moved it away from the building enough so that the fire couldn't reach he laid bet Press against Senate ratification of the truly They were interviewed on NBC's television program "Meet the Press" Helms said can count on" a filibuster against ratification when the issue cornu to the Senate The treaty must be approved by two-thirds of the senators present and voting Helm and Thurmond both rejected argument! that failure to ratify the treaty would touch off violence in Panama Helms asked whether the United Statu was going to be by euch arguments "We have a few militants who are encouraged by our own State Department Much of this talk about shutting down the canal has bun prompted by our own he said the report Price Waterhouse represents a number of utilities and energy-related companies including Allegheny Power System and Consolidated Edison of New York Consolidated Natural Gas in New York Detroit Edison Co Exxon Corp Gulf Oil Illinois Power Co Minnesota Power and Light Co Niagara Mohawk Power Corp Shell Oil and Standard Oil of California and Indiana Price Waterhouse also represents a number of corporations that are industrial customers of Alabama Power including US Steel Allied Chemical Corp Allis-Chalmers Diamond Shamrock Corp Goodyear Tire and Rubber Co Scott Paper Co and Jim Walter Corp which also sells coal to Alabama Power All those firms have plants in Alabama that purchase large amounts of power at rates far lower than the family dwelling rate Exhibits in the report also show that Price Waterhouse has represented utilities before state public service commissions including Detroit Edison in a hearing on revision of the controversial fuel adjustment costs before the Michigan PSC At least two of the accounting firm's clients are banks with which Alabama Power does business: Bankers Trust and Chemical Bank of New York Asked about the firm's utility clients in particular Pederson pointed out that neither he nor the managing partner in Birmingham Henry McPherson have responsibility for any utility audits Pederson said the firm can do a job" with the $190000 being paid by the state including $100000 have a time finding it though" he added A restaurant aad the motel office both of which are located near the front of the complex were undamaged except for a trace of smoke that hung in the air and drifted out of the air conditioning vents just lucky it didn't happen at night when everyone waa asleep Smoka inhalation victim is treated Sunday by fire medics and ambulance attendants as a policeman assists outside the smouldering ruins of a large motel on the Bessemer Superhighway The woman By BrecPattersoe Staff Writer More than 70 fire fighters battled a Sunday afternoon blaze that destroyed most of a large motel on the Bessemer Superhighway and lent several persons to local hospitals according to Capt John Stewart of the Bessemer Fire Department The Holiday Motel 4301 Bessemer Superhighway lost about 50 rooms after a fire started near the laundry room in the middle of a rear section of the one-story complex a motel employe said The cause of the fire had not been determined late Sunday night as firemen continued to hoie down and sift through the blackened ruins of the motel No one was seriously injured in the fire but one woman Mrs Nadine Kennedy whom bystander said lived in one of the rooms wu taken to Baptist Medical Center-Princeton for treatment of smoke inhalation Capt Stewart and a hospital spokesman said Senate filibuster promised by enemy of new canal treaty Associated WASHINGTON An opponent of the Panama Canal treaty promised Sunday there will be a Senate filibuster against its ratification Sen Jesse Helmi R-NC and Sen Strom Thurmond R-SC who oppose turning the Panama Canal over to the Panamanians said the United States should not allow itself to be blackmailed into giving up its property "You've got to stand up for your righte" declared Thurmond own this property and ahouldn't have to give it up by blackmail" The agreement gives Panama control of the 50-mile canal by the year 2000 but gives the United States the right to insure the neutrality of the waterway indefinitely Thurmond and Helms visited Panama last week and are expected to work.