8 MAGIC NUMBER Big Daddy shoots down Astros Paoe" 6 Ukiah drug dealer sentenced to prison Page 2 WEATHER MENDOCINO COUNTY Local drizzle possible north of Point Arena. Locally smoky. Clear elsewhere. Lows in the mid 40s to mid 50s. Areas of smoke Saturday, otherwise mostly sunny. Highs in the upper 50s and 60s coastal areas to near 90 inland. Temperatures H L Yesterday 91 49 Last year 72 53 Rainfall overnight rainfall 0.00 Year to fifete 00.00 Last year 00.00 Ukiah Daily Friday, September 18,1987 'Journal 1987, Donrey, Inc. Vol. 127 No. 130 16 pages Serving Mendocino County, Calif. 25 Cents Agreement on missile-reduction treaty Reagan-Gorbachev summit assured By BARRY SCHWEID AP Diplomatic Writer WASHINGTON (AP) — The United States and Soviet Union have reached an "agreement in principle" to baarnedium- and shorter-range nuclear missiles and have agreed that President Reagan and Soviet leader Mikhail Gorbachev will hold a summit before the end of the year, Reagan announced today. The treaty — Reagan's first arms accord with the Soviet Union — would be the first to ever ban an entire class of nuclear weapons. Soviet Foreign Minister Eduard She- vardnadze called the agreement "a common success for all mankind, for all civilization." The president said Secretary of State George Shultz and Soviet Foreign Minister Eduard Shevardnadze, who settled major differences in a 9V4 -hour negotiating session Thursday, will meet in Moscow next month to work out the rest of the details and set the date and agenda for a summit in the United States, presumably in Washington. In a nationally televised announcement at the White House, Reagan said that the three days of U.S.-Soviet talks in Washington showed the two sides "have serious differences in many areas, (but) the tone of the talks was frank and constructive and notable progress was made. "I'm pleased to note that an agreement in principle was reached to conclude an INF treaty" and to work out details for a summit with Soviet General Secretary Gorbachev "later this fall." Shevardnadze, at a news conference at the Soviet Embassy minutes after Reagan's nationally televised announcement, noted that he and Shultz had met hours beyond their original plan and said, "The road to an agreeement... turned out to be more difficult than anyone had thought." He said that "over the last few days we have experienced a series of emotions, from anxiety to uplift. The day before yesterday, I said to Secretary Shultz that it is time to bring in the harvest. And he agreed." In the end, he said, "for the first time in the history of the existence of nuclear weapons,... it has been possible to agree on the elimination of two classes of nuclear weapons," the shorter-and medium-range missiles. "This is a beginning." Shultz, who answered reporters's ques- tions after Reagan's brief announcement, noted that even "with a class of nuclear weapons being eliminated," thousands of longer-range missile warheads will still be in the superpower arsenals. "We have a great deal of work to do beyond an INF agreement, but it's a beginning.... This doesn't solve the problem by a long shot ... but you've got to start and this does get us going and I think is very significant in this sense." White House chief of staff Howard H. Baker Jr., talking to reporters earlier in the day, said the accord "would represent a reduction (in nuclear arsenals) for the first time in the history of the nuclear age." Pope lectured by dissidents AIDS boy gets a hug SAN FRANCISCO (AP) — As protestors demonstrated today outside majestic St. Mary's Cathedral, Pope John Paul n met with laity representing every U.S. diocese and was told in strong language that to stifle dissent denies the dignity and rights, of the dissenter. As the'pontiff listened intently to speeches from a man and woman representing the nation's laity, busy workers were completing last- minute details at Candlestick Park, which on Thursday was used by the San Francisco Giants for a baseball game. Outside the cathedral, a small crowd of 200 people included about 75 mostly homosexual demonstrators who chanted "Shame, shame" as the pope exited for the short drive to the stadium, where colorfully dressed dancers and singers entertained. "No religious figure is going to say to us that we cannot respond fully ... to members of our own sex," said John Wahl, coordinator of the Papal Visit Task Force, which organized protests. "God help anybody that tries to stop us. The pope's final appearance in Northern California will be a Mass for an expected 70,000 people in the stadium converted to a cathedral a few short hours after the game. Pope sipped Frey wine at S.F. dinner SAN FRANCISCO (AP) — When Pope John Paul n sat down to dinner Thursday night in San Francisco, one of the wines he sipped was a product of Mendocino County. The first two courses, Cambodian chicken, pineapple and coconut soup, and a cold salad of grilled lamb, were accompanied by a spicy gewurtzraminer, white wine produced by Frey Vineyards of Redwood Valley. Frey Vineyards, whose winery began operating in 1980, is a family corporation owned by Dr. and Mrs. Paul Frey and there eight sons and four daughters. Current production is about 5,000 cases a year, most of it sold in Northern California, according to Paul Frey Jr. "We fell pretty lucky the pope is going to drink our wine," said Frey. "We're a very small winery." The winery also produces cabernet sauvignon, zinfandel, syrah, sauvignon blanc and grey riesling. "It's just lucky I guess," agreeo Paul Frey ST., when asked how his family's wine was served to the pope. "I have been carrying a pope medal for years my mother got from Pope Pious Xn in 19SO. I guess it pauFoff." The grapes used in the Frey gew- uriztraminer are grown at the Gumley Vineyard in Potter Valley. Crowds began appearing in the predawn chill, with about 50,000 in the stands by the scheduled 10:45 a.m. PDT starting time. "Though I know the church is not a democracy ruled by popular vote, I expect to be treated as a mature, educated and responsible-adult,'' Donna Hanson, bishop's secretary for social ministries in Spokane, Wash., told the pope during the morning gathering of 3,000 lay men and women. "Not to question, not to challenge, not to have authorities involve me in a process of understanding is to deny my dignity as a person and the rights granted to me both by church and society," she said. She also asked that the church prepare to deal with the diversity of American lifestyles. "Can we reach out and be more inclusive of women, our inactive clergy, homosexuals, the divorced and all people of color?" she asked. On Thursday, the pope embraced a 4-year-old boy with AIDS at the 18th century Mission Dolores as thousands of gay protesters outside angrily ridiculed the Catholic Church's condemnation of homosexuality. Beat in' the batter Rose-Marie, third from right, watches as (l-r) Joe Cantaron, Richard Shattuck, Christine Murgula, Charlie Price and Les Rldgeway whip up a huge cake to be served at the dedication ceremony of the new Uklah Civic Center, Saturday, Sept. 26. The three-dimensional design will be a rendition of the newly restored building and will serve the first 1,000 people attending this historic gala. Eureka Southern on track despite bad luck By RANDY FOSTER Journal SUN Wrttw EUREKA — Fires, derailments, threats to repossess its track and a late start in its passenger season have not discouraged the Eureka Southern Railroad from overcoming its financial problems. Eureka Southern began the year with much enthusiasm and energy. Management planned passenger excursions and continued aggressive measures to increase freight-hauling business. But 1987 has been marred for the railroad by a series of untimely and expensive roadblocks. The railroad fought for its life in April when GATX Leasing Corporation, which holds the lien to Eureka Southern's tracks, threatened to repossess the tracks and tear them up for salvage. That move was blocked in April by a U.S. Bankruptcy Court judge, Minor derailments continued to plague the line, at least six by March. The railroad's passenger service, not announced until almost the beginning of the tourist season, got off to a crawling start with only a handful of passengers taking advantage of the first scenic runs. A fire in the line's Arnold tunnel just north of Willits early August temporarily isolated the line and threatened a planned passenger run between Eureka and Willits in mid August. The tunnel was sealed and a bypass was built, and finishing touches were still being applied to the new track as the passenger train passed on its way to Eureka. And last Saturday another tunnel fire, this time in Cloverdale, isolated the line from Bay Area terminals. "It's been a tough year," said Eureka Southern general manager John Kosack. "We've had numerous obstacles in the past — storms, tunnel fires — but we seem to make it through." In fact, despite everything, Eureka South- em seems to be doing well. Just prior to the Cloverdale fire the line was handling 16 to 25 loads per day to Willits, where the cars are switched over to Northwestern Pacific engines and taken the remaining distance south. Even as Southern Pacific Railroad, Northwestern Pacific's parent company, solicits bids to repair and reopen the Cloverdale tunnel, Eureka Southern customers are still loading freightcars and waiting in Willits for the line south to reopen. "We have some very loyal customers," one Eureka Southern employee said. No official date has been set for when the Cloverdale tunnel will be reopened, but Eureka Southern officials are looking at early October to resume cross-state service. The line is still continuing with local, five- day weekly timber runs in Humboldt County. "We are by no means out of business," Kosack said. Passenger business has picked up remarkably. The railroad didn't even own passenger cars until late May. Now management is expecting 250 riders on the - Willits-Eureka run this weekend. "We expected a little loss or to break even on the passenger runs," one company man said. "We've actually made a little money, I'd say about $30,000. I'd say we're content." Another excursion is scheduled in October, and Kosack said he plans to have a full passenger schedule by next year. "Hopefully 250 will be our average next year," he said. "We can carry 400." Eureka Southern's survival can be attributed to decisive management from trustee Jerry Gregg and just plain tenacity among railroad employees. Gregg initiated cost-cutting measures to keep the railroad afloat. He cut staffing by about a quarter, from 44 to 30. Many of the cuts were administrative, managerial and clerical positions. He also simplified office procedures to compensate for the smaller crew. That in addition to the railroad's aggressive passenger and freight policies. "We're just optimistic here," Kosack said. "We've had so many obstacles thrown our way, we're just used to getting over them." City of Ukiah wins $217,455 insurance settlement on legal fees By PETER PAGE Journal Staff Wrltar An insurance company has agreed to pay Ukiah's legal costs in its ongoing lawsuit with Underground Construction over cost overruns on the Lake Mendocino Hydroelectric Project. Transcontinental Insurance Company agreed to pay the city $217,455 for legal defense costs as of March 31, plus all future city legal expenses in the suit. City Attorney David Rapport said it is estimated that if the Underground lawsuit goes to trial in February, as scheduled, the city's defense costs could reach $1 million. The agreement with Transcontinental settles a lawsuit brought against the firm by Ukiah in July 1986, after the company refused a claim from the city for payment of its legal costs. The city, Rapport said, is self insured to $25,000. Costs after that are paid by REMIF (Redwood Empire Municipal Insurance Fund) up to $100,000, with an "excess" policy paying costs after that up to $11 million. When the lawsuit against the city ; was filed two years ago, the city filed a claim for legal costs with REMIF, which was refused. After negotiations, REMIF agreed to pay the city $75,000, but the city would have to refund the payment if Transcontinental refused to pay its share. When Transcontinental refused the claim the city sued, charging the company with bad faith and breach of the state business code. The city dropped the bad faith allegations, which could have resulted in punitive damages, as part of the settlement agreed to by the City Council Wednesday night. The settlement does not address the larger issue of whether the insurance company is liable to pay any damages a court may award to Underground. The construction firm ran approximately $3 million over budget when it built the powerhouse inside Coyote Dam. Underground claims it was induced to bid too low on the project because of information withheld by the city and Tudor Engineering, the firm that designed the project. "That is very much unresolved at this point, but Transcontinental has agreed they won't come back for the city to refund the defense costs," Rapport said.
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