Northwest Arkansas Times from Fayetteville, Arkansas on July 8, 1974 · Page 4
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July 8, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 4

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Fayetteville, Arkansas
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Monday, July 8, 1974
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Editorial-Opinion Pag* The Public Interest Jt Th« Fir it Concern Of This MONDAY, JULY 8, 1974 Odds Woukl Be Better With John Wayne '"the Washington Merry-Go-Round Differences Of Opinion The Arkansas Public Service Commission a few .weeks ago postponed a July public · hearing on an application by Southwestern Electric Power Company and Arkansas Electric Cooperative Corporation to proceed ; : with plans for a coal-fired generating plant : on Little Flint Creek in Benton County. The state PSC delayed the hearing in a ruling that set forth what it found to be a number of inadequacies in-the power companies' environmental impact statement. Just last week SWEPCO responded to.the PSC ruling. Electric service to Northwest Arkansas will be severely threatened unless the power companies are allowed to get on with their business, is about the sum of the industry answer. ' -.,,. We confess to a bit of puzzlement over the ; '^acerbity of this industry .reaction. Certainly they can be excused for disappointment in the broad ranging dimensions of the PSC's request for additional information. Doubtlessly the companies can make a case for the facts already presented in a number of instances. But there seems a curiously hard absence of cooperative mood in the SWEPCO statement. We doubt, therefore, that the PSC will respond more warmly than in the earlier instant. In any event, and most of the argument revolves around technical considerations well beyond our competence to'judge.'.there IS still the overriding matter of the price- less quality and essentially fragile nature of the Ozark Mountain environment. Not too long ago a story was widely circulated nationally calling attention to these Ozarks as among only a handful of locales remaining in the entire United States with relatively clean air and water. Even the imminent threat of curtailed electric energy measures up poorly against any potential for destruction of the area's most priceless asset. . As we understand it, the PSC is asking for sufficient proof that the Northwest Arkansas environment will NOT be adversely affected by the'proposed plant. That doesn't seem too unreasonable a request. If there are serious doubts they should SURELY be resolved. , . . . , . · ' On. another point, SWEPCO disagrees with the PSC decision to allow the Oklahoma Pollution Control Board to participate in the eventual hearings. SWEPCO says state statute doesn't provide for it and that there's no good reason for the procedure, anyway. We don't blame SWEPCO for not wanting outsiders muddying up their case, but there are interstate aspects to the consideration, plus a lack of precedent, which makes the PSC ruling important enough for both sides to pursue. In any event it seems clear enough at this .juncture that the application has'moved well'past the "cut and dried" stage. It'll take some time from here. _. WASHINGTON -- No fortress of Ihc early West could compare with the baslion of bureaucracy that now holds the Indians at bay. With paperwork instead of fireworks, the bureaucrats who man the Bureau ot Indian Affairs have, overpowered the Indians more completely than the cavalry ever did. , ·'..; Twenty months ago, a few '·'frustrated "'Indians .raided .the^ ' BlA'files'ahH'triumphantly bore 'off hundreds of cartons of the hated papers. The aggrieved Indians showed us the stolen files, which provided documentary proof of the nelect and betrayal that have characterized the white man's conduct toward the Indian. We wrote a series of columns citing evidence from the documents that the BIA had helped white exploiters cheat the Indians out of their water, timber and, mineral rights. We -advised the Indians, nevertheless, to abandon their futile raids and sieges and to fight back instead in the hearing rooms ot Congress. We accompanied them to Capitol Hill where we testified in their behalf. Yet loda ythe BIA is as invulnerable and invincible as ever. For instance, the BIA administers the tribal lands of the Shoshone-Banock Indians who own some of the nation's finest potato acreage at Ft. Hall, Idaho. The BIA leases the best of this Indian land to corporate fanners for. $12,36 an acre which brings the. ...Shoshone- Bannocks a return of less than two per cent of the harvest. Yet neighboring landowners, who lease their land to potato What Others Say A WELCOME TO DR. BISHOP The University of Arkansas has a long way to go before any or all of its four campuses attain the status and reputation of the best Southern universities. Such an appraisal of the University's condition is not uncharitable, we think, but rather it is a realistic point of beginning in appraising the University's future. Given the premise, it follows that the new president of the University, Dr. J3harles , , ; E.,, Bishop, will have" both a formidable test and a bright opportunity when he comes to Arkansas to take his new-job in mid-August. Let us declare that the University Board of Trustees has chosen well, from all indications, in filling the University presidency after a long and painstaking search for a successor to the retiring Dr. David W. Mullins. His credentials are first-class and his early observations on the University's needs, as expressed in an in- terview at College Park with the Gazette's Bob Stover, show discerning awareness, of the work that he will be called upon to do.'" '·'·"'.·': . ' , Dr. B is hop comes to the · University of Arkansas from the University of Maryland, where he has been chancellor of the campus'at College Park. There he has presided over an institution with 34,000.enrollment, one of the ten largest campuses in the country. Earlier, he was a vice president of the ..University of North Carolina, which is one of those best Southern Universities to which w e have already made reference. Dr. Bishop has his doctorate' in economics from the University .of Chicago and has served on -various commissions making studies for the U.S. government. C e r t a i n l y his record is impressive. We .rather wish that'his .basic,degrees, had., been in Arts and: Sciences, or in" a field less technical than agricultural economics, but trust that his horizons have been broadened in his broad From Our Files; How Time Flies 10 YEARS AGO The Fayetteville City Council last night passed four ordinances -- including legalization of the annexation of two small 50 YEARS AGO Exhibition work in lifesaving and all kinds of sports iwas given yesterday before members of the Rotary Club which 100 YEARS AGO Friday last the exercises of the commencement week at the University closed with the inauguration of Gen. Bishop, the president-elect. The ceremony took place at night on the University grounds. In the end this action of the committee of arrangements to have the inauguration out of doors was fully justified by the very large tracts of land -- and entertained a group of protesting ministers who are concernd about ' easing application .of zoning laws to church property. also accepted an invitation from Camp Keetdosa to visit the boys attending school there, and to enter their recreation. audience present, which It would have been utterly impossible to have accomodated in either the hall of the University or in the Courthouse. Work on the University building is going on rapidly and from the number of hands engaged at the work, we predict that this grand structure will be roofed before winter's snows set in. They'll Do It Every Time A 5-CW WEEK IS TOO MUCH FOR ml new YEAR Auru.pors STAY HOME AHP TENP TO MV UBSE MESOU COMPLAIN EP FOR 3O YEARS, KEEP BUS^SW I'M WORKJNGUKEA 006 K (STIRES-SO WHATSSHe- POW5.NOW? growers, get 30 to 40 per cent of the take. The private landowners have shared with the growers in the great potato prosperity, as prices have soared from $1.80 to $6.80 a. bushel since 1970. Still the bureaucrats at the BIA, unmoved by the Indian appeals for the profit-sharing, continue to collect the same fixed price for the Indians as the corporate farmers paid before the price explosion. The corporate tenants also leave the land bare during the winter. This erodes the soil, [which runs off and pollutes the trout streams. Under the law, an environmental impact study should be made. But the local BIA oficials have refused. "We've made our own in- f o r m a l assessment," said Hiram Olney, the local BIA superintendent, "and determined that a full-blown environmental study, is not needed." This is a n o t h e r lecision which benefits the corporate tenants instead of the Indian landowners. . The bureaucrats claim that the sprinkler systems on Indian land and a tribal ban against the use of certain chemicals, make the Ind more costly for the white tenants to farm. It is true that the tribe banned chemicals, which seeped into the streams and killed the fish. The aerial spraying also made the Indians ill. · . B u t Jack G. Peterson, an agricultural economist who has spent two years in Ft. -Hall, contends that the Indian restrictions-don't increase costs at all. Nor have the bureaucrats produced any statistics to support their claim that the chemical ban has reduced crop yields. In any event, any profit- sharing a r r a n g e m e n t s , presumably, would permit the corporate growers to deduct legitimate costs. . · · · The BIA claims the Indians prefer the $15.36 set rate, rather than gamble on a percentage of the profits, because "they re -afraid of the high risk." Yet under profit sharing, even a poor crop' would earn the Indians more than the dirt-cheap, fixed-rate leases. Peterson tells us he has heard BIA officias warn tribal members against profit sharing. "If your tenant doesn't grow any potatoes, you don't get any money," he has heard them threaten. This is all too typical of BIA tactics, which seem calculated to con the Indian out of their legitimate earnings. It follows the BIA. tradition of favoring white profiteers over the vic- tirn'ized Indians. - ' . · · But the confused Shoshone- Bannocks finally got wise to their BIA administrators and sent a resolution to Washington protesting "the inequitable manner in which tribal...lands have been -leased by federal g o v e r n.m e n t . " The tribal leaders demanded "an immediate investigation" by the secretary of the interior. But their; complaints so far have been ignored.; T h e General Accounting -Office, meanwhile, has conducted an investigation of the ShoshoneBannock ripoff for "Then we get another delay, then you go abroad again, then the foreign leaders return those visits--that takes us up to the bicentennial--" exposure at College Park and the University of North Carolina and elsewhere. We were impressed as well with what he had to say in 7 a wide ranging conversation with Bob Stover. His remarks reflected an awareness of all that he has to learn about the University of Arkansas as it is today, but at the same time, it was clear that he had been doing his homework meticulously. He knows quite a lot about the Arkansas system already. Dr. Bishop's standards for priority were creditably reflected in thoughts he had about his work at College Park. He said his greatest accomplishment there was in improvement of faculty, and, indeed, there is nothing any campus offers so important as the faculty. Looking to his task in Arkansas, . he went on to emphasize faculty. recruiting and observed: "I can't believe we would want to settle for anything less than first rate quality in Arkansas.", I In the interview Dr. Bishop volunteered early the belief that- the University will have to recognize and develop spe- cialities for each campus. Clearly he knows the limitations of the state's resources, as well.... as the dimensions -of its,1 " population. He said that certainly the state did not need five full-fledged graduate universities and he expressed hope that each campus of the University of Arkansas would establish its own identity in fulfilling needs. . He indicated that he would probably want, later, to have a chancellor for Fayetteville, which is the original campus. Such a chancellorship appears in order, to establish the proper separation - between the Uni- versity presidency and the Fay. '_ elteville campus. In another area of concern, he called properly for development of belter service to communities in adult education. T h e Arkansas Gazette welcomes Dr. Bishop to Arkansas with a sense ot anticipation and promise. What the University will need in the years lying immediately ahead is leadership that will attract the best faculty members in every category. Necessarily this will require, among other things, an atmosphere of free inquiry and free expression, which we trust that Dr. Bishop will encourage even if at times he cannot avoid the enmity of certain politicians, especially in the legislature. Necessarily, the development of the University will also take liberal infusions of money, of which Arkansas higher education has never had nearly enough. A university president does not always have the easiest job in developing a strong happy faculty while i a t i s [ y i n g the political establishment at the same lime, but such is the nature of the University, president's job, here' and elsewhere. More than incidentally. Dr. Bishop has been chosen by a Board of Trustees whose majority has shown an increasing sense of dedication to , high standards and of responsibility to the academic community. What we may wish for Dr. Bishop is a long administration in which the University of Arkansas may move decisively . toward new standards of exv" ,.' - cellence, toward a place of Ais- Unction in the South which it has not enjoyed but which is not too much, in our judgment for our stale to aspire to and work to attain. -- Arkansas Gazette State Of Affairs Lo, The Poof Banker By CLAYTON: FR1TCHEY . WASHINGTON ' -- Financially, widows and orphans " have always been an endangered species, but today they have company. A rash of business failures shows that the bankers, trust officers and other experts who are supposed to look after innocent investors apparently aren't even capable of looking after themselves. Former President Calvin Coolidge used to say that the business of America is business, but what would he say today when so many big businessmen are giving business a bad name? Americans are used to seeing small investors lose their' savings, but they are astonished at seeing the supposed experts losing -their money, too. While selfishness and immorality are old complaints against the business and banking worlds, they at least have hitherto not been seen as suckers themsevles. Yet when Oklahoma lawyer. Robert Trippel, set out to sell $130 million of shares in his now bankrupt Tulsa - based H o i n e s t a k e Production Cb.,;he.did;notipick ·! on poor widows, 'so f io speak, · '*' but instead fleeced some of the industrialists, along with many rich celebrities, most of whom have expert CO financial advisers. The list of victims in Trippet's phony . gel-rich-quick oil drilling scheme include Walter Wriston, chairman of New York's mighty First National City Bank ($211,000), Fred .T. ..Borch, former? chairman of ""General Electric, .,($,ttQ,920),. ( William H. Mortbri; president' of Amnrican Express (57,000), Donald Kendall, chairman of Pepsi Cola (amount unknown), Thomas Gates, former defense secretary and chairman of the Morgan Guaranty Trust Co. ($133,000), Western Union chairman Russell McFall ($394,000), Hoyt Ammidon, chairman of the U.S. Trust Co. (§114,000). ROBERT M B T Z G E R , president - of Resource Programs, a firm that sells advice to investors in oil and gas, says that he and his associates used to "sit down and read the Homestake prospectus and laugh." If Metzger would like a follow-up laugh, he ought to hear about another large swindle that lias just emerged in the Virginia suburbs of Washington! In this PonEi-like case, a bold confidence man cooked up a virtually non-exi6tenl wine- importing operation, but nevertheless had no · difficulty palming it off on a whole group of bankers to the tune of several million dollars. It now , appears that even a routine check would have exposed the phony nature of the enterprise. The latest news is that Robert Vesco, who fled the United States after being accused of looting Investors Overseas Services, Ltd. of hundreds of millions of dollars, even victimized the American banker who originally made it possible for him to gain control of the n o t o r i o u s Bernie Cornfeld mutual fund empire. ' Twenty former executives of the bankrupt Equity Funding Corp., plus two former company auditors, have been indicted on charges of creating and selling untold millions of dollars in bogus insurance policies, thus enabling Equity to sell its inflated slock to some v 'bf : the biggest banks and trust and pension funds in the United States. The brazen scheme went on for years without the bam- b o o z I e d financial officials' ' catching on. In the end, of course, the wealthy victims ot such confidence games as Homestake Production will not suffer too much, for the losses can he greatly cushioned through large income tax deductions, which are part of the growing federal welfare system for industry and its leaders. THE CHIEF TROUBLE vyith this trend is that every time industry runs to Washington for help when mistakes threaten bankruptcy it provides fresh ammunition for nationalization of the economy. In many ways, big business is pushing the country toward more and more socialization. It took the federal government to rescue the Lockheed Corp. with taxpayers' money, and now the big cattle speculators are seeking and getting unlimited government-guaranteed loans to save them from bankruptcy in the next 12 months. ' So far, however, the record rescue operation for a single institution is the $1.45 billion put up by Ihe taxpayers through the Federal Reserve Board for New York City's Franklin National Bank, one of the largest in the country. Since the failure of Penn Central, 4he nation's largest railroad, the taxpayers have been subsidizing an immense part of the country's broken- down rail system. Amfrak is laying out hundreds of millions of dollars annually of public funds. The old complaint against big business was that it concentrated on profits. Today the tycoons are losing standing because, through incompetence and mismanagement or worse, many can't seem to make enough profits to stay in business without government assistance. . (C) 1974, Los Angeles Trme« Congress. But -the. unreleased; report was screened by BIA officials before it ·. reached Capitol Hill. Although ,it largely whitewashes the BIA, it confirms that the $15.36-an-acre thi Indians are paid is only a fraction of what their white neigh* bors are earning from the" potato boom. . , . . . . " ..Footnote: In fairness 'to Interior Secretary Rogers Morton,' he has recently.sided 'with 'the Mohave; and Cheyenne -Indians, in controversies over Indian, rights. His rulings have been imposed upon .the BIA, which is under, his jurisdiction. '..' . . , ' WASHINGTON WHIBL: Rep: J a m e s Symington,'·; D : Mo,.' kicked Sen. Quentin Burdick;. Df N.D., in the stomach the other- day, knocking the wind out of him. But it was all in good sport. The two legislators wersf sparring in karate class:.;**' White House investigator: Jack Caulfield conceded to senators; behind closed' doors that ' he a s k e d Assistant ' Attorney General Henry Petersen to:try to link ex-Interior Secretary Stewart Udall and ex-McGovern fund-raiser Henry Kimeman to · the Mafia. Petersen. "indicated he would match it," Caulfield secretly testified. But he didn-t think anything ever came of it," h e said...The Republican National Committee paid .$U25 to rent 50,000 names from ths mailing list of the ultraconservative Liberty Lobby during, a recent fund-raising drive. W; have reported in the past that the. Liberty Lobby, has been infiltrated by Nazis who rever* the memory of'Adolf Hitler.'--» How To Get In On A v Good Deal WASHINGTON (ERR)'. ·- When 'greed is harnessed'to ths : herd' 'instinct, '."sure-fire".' investment schemes flourish. Two major examples ' have 'recently come to light. In what The Wall Street Journal described .:as possibly "the biggest swindle of its kind in history;" around 2,000 Americans invested approximately' S130 million m an .'oil-drilling operation run by..the Home-Stake Production Co. .of Tulsa, Okla. It is estimated that $100 million or more of that money has disappeared. The second scheme, centered in Northern Virginia', involved the - purchase · ' ' o f . low-grade "industrial" wine" in . Europe.; The''wine was then to be .'resold to food processors for use ..in salad dressings ' and · other products.- Lured by guaranteed returns' of 30 to '100 per ceHlj, investors sank $26 million into the venture. . · ':: '.'.··' Internal : Revenue ; Service investigators' have alleged -th.st Home-Stake used very little-'of its investors' money for qil» drilling. As for · the wine scheme, the Securities · and Exchange Commission has determined that none was ever bought, much less delivered; Nevertheless, both the oil and the wine schemes went on for years, attracting such normally astute-investors as bank presidents. How could it possibly have happened?' · - . . · - . VERY EASILY, as a matter of fact. Both', schemes, anij many others like them, ,-ar.i variations on the old "pyramid" swindle. As U.S. News :«j WorlS Report observed, "Charles 'Get Rich Quick' Ponzi was a master, at the pyramid'swindle,'which) involves paying high dividends, or interest to early investors out of money from those'lured in later." Pohzi's scheme, hatched in the early 1920s; -was based on postal-reply coup'opi that could be bought in Spanj for one cent and redeemed' irl the United States for : 10 cents worth of postage stamps. ! !-It never.occurred to anyone that Ponzi -colild not redeem the stamps for cash. And he never bought many coupons in.-any event. - · ' ' · . ' . - " - . ' · The chain-letter, craze of' th« mid-I930s had probably the broadest base of participation of any pyramid scheme to date, "How could it miss?'.' wrb't* Paul Sann in Fads,'Follies and Delusions of the^ Arterican People. "You put five.names on a piece of stationery and added your to.the bottom. Then you sent out fjve copies of the letter and esked each recipient to mail a dime to the name at the top, strike it from the list, put his own at: the bottom below yours, and send out fivs more copies." ' . · · · . . It couldn't miss--provided you were in on the scheme early and no one broke the chain. Those at the base of ths pyramid were sure losers..'The chain-letter craze · collapsed almost as swiftly as it emerged! although it reapppears from time to time in one guise of another. . - . - . . . .- GEORGE J. W. GOODMAN, better known as the' financial writer "Adam Smith," 'is One of those who got burned in the Home-Stake oil-drilling scheme; It's not the first time.he'was taken. In his -first book, The Money Game, he described how he lost a bundle in cocoa futures. Then, in Supermcney; he told of investing in' a Swiss bank. The bank proceeded · to Jose $40 million, largely because it bought 17,000 cocoa-futures contracts with a face value of J153 million. ' ' . ' ' · · ; After the debacle, Goodman reread the bank's prospectus 1 : "I was trying to abstract soriib lesson from the experience," he wrote, "but I knew that (if tomorrow someone brought me the fastest-growing financial institution in Switzerland,...! would probably do it ail over again." . At any rate, he was grist for at least one chapter of a new book.

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