Altoona Mirror, January 25, 2001 : Front Page

Publication: Altoona Mirror January 25, 2001

Altoona Mirror (Newspaper) - January 25, 2001, Altoona, Pennsylvania Sports: Hollidaysburg’s Appleman reaches milestone Life: Local metal band to be featured on TV show )!Altoona Mirror © Copyright 2001    THURSDAY,    JANUARY    25,    2001    500    newsstand Black GARDNER BLACK CASE Schools file suit against lender By Phil Ray Staff Writer HOLLIDAYSBURG — One of the world’s largest investment banks, which deals with billions of dollars annually, has become part of the John Gardner Black fraud case in which 50 Pennsylvania school districts lost $70 million in bond money. Lawyers repre-! senting the school districts, including Tyrone Area in Blair County, filed a lawsuit this week in the Blair County Court of I Common Pleas against New York-based Lehman Brothers Inc. The lawsuit against Lehman Brothers has made six separate charges of fraud, negligence, misapplication of entrusted property, violation of the Pennsylvania Securities Act, civil conspiracy and improper conduct in conspiracy with others. Bit by bit, the school districts’ lawyers have followed the trail of money from Black’s Tyrone-based investment businesses to Mid-State Bank in Altoona to various lawyers and investment advisers. Rich Finberg of Pittsburgh and David A. Gradwohl of Philadelphia, attorneys for the school districts, have reached an end point. Gradwohl said Wednesday that FBI reports indicate that Lehman Brothers may be involved in Black’s scheme to use school funds to invest in highly volatile and risky securities. The FBI conducted the investigation that resulted in Black’s guilty plea to fraud last year in U.S. District Court in Pittsburgh. Black is serving a 41-month jail term. In reviewing FBI interviews with witnesses, the school districts’ lawyers found that an attorney employed by Lehman Brothers, identified as Philip Becker, raised questions as to whether it was legal for Black, through his Tyrone companies Devon Capital Management Inc. and Financial Sciences Management Inc., to use school funds to buy highly Collateralized Mortgage ations, or CMOS. The lawyers contend it wasn’t legal and that Black knew it. risky Oblig NORFOLK SOUTHERN LAYOFFS Please see Suit/Page A4 FOGGY FUTURESecond reprieve appears unlikely for Hollidaysburg By Kevin OTT Staff Writer In November, when Norfolk Southern Corp. announced it would eliminate jobs, U.S. Rep. Bud Shuster, R-9th District, called the company out on the carpet, citing a little-known agreement between Congress and Norfolk I Southern’s chief executive officer that employment in the area would remain stable. This time, such a demand may not be so easy. The rail giant announced this week that 2,000 jobs would be I eliminated by the end of the year, I ff    but officials declined to say which jobs would be cut or where. Shuster “The board [of directors] concluded, as management recommended, that we needed to take firm and timely action to bring our resources in line with the realities of today ’s market, so that we can provide the best returns from our shareholders,” Norfolk Southern CEO David Goode said. Please see Reprieve/Page A9 Mirror photo illustration by Tom Worthington llCompany officials won’t elaborate on upcoming actions By Craig Williams Staff Writer Norfolk Southern Corp. President and Chief Executive Officer David Goode said even though there are IO railroad-owned factories, shops and administrative operations earmarked as redundant on die latest round of company cuts, every facility throughout the company will be scrutinized closely for potential downsizing, elimination or realignment. Goode told investors Wednesday that Norfolk Southern is committed to as many cuts as it takes to make the Goode company profitable again after announcing that company dividends are down 70 percent to 6 cents per share from a high of 20 cents per share last month. “It’s clear to us we have more than enough capacity to maintain our equipment,” he told stockholders. Please see Foggy/Page A9Conklin selected ■ The state committee is expected to approve the Democratic nominee for 9th Congressional District seat. By Robert Igoe Staff Writer HUNTINGDON — One half of the race for the 9th Congressional District seat is set. On Wednesday, the chairmen of the ll county Democratic committees that are part of the 9th District named Centre County Commissioner H. Scott Conklin as their candidate for the race to fill the congressional seat being vacated at the end of this month by retiring Bud Shuster. Conklin was selected from a pool that also included attorney Stacey Brumbaugh, physician Jack Shocker, investment manager Mark Stevenson and developer Stephen Weidemer. Please see Conklin/Page A3 Conklin Mirror photo by Kelly Bennett Congressional hopeful John Eichelberger Jr. (center) announced his candidacy Wednesday flanked by his son, Johnny, and his wife, Charlotte.Eichelberger will seek seat By Kay Stephens Staff Writer HOLLIDAYSBURG — Blair County Commissioner John H. Eichelberger Jr. said he is entering a 9th District congressional race with several good Republican candidates. And by no means should anyone think the race is just between him and Bill Shuster, son of the retiring U.S. Rep. Bud Shuster. Eichelberger, who announced his candidacy Wednesday at the Blair County Courthouse, acknowledged that Blair Countians may be focusing on him and Shuster. But that’s not the case outside Blair. “Outside the county, there are a lot of people interested in other candidates,” Eichelberger said. Please see Eichelberger/Page A3 St. Francis initiates renovation project By Mia Rohart Staff Writer LORETTO — St. Francis University will spend $100 million during the next 20 years to build, renovate and expand the campus, the Rev. Christian Oravec, president of the college, announced Wednesday. Projects will include constructing a new science and technology center, adding and renovating the Pine Bowl outdoor athletics com plex and constructing a new dining hall. Tuition costs will not rise as a direct result of the construction, although yearly increases in tuition are commonplace among colleges and universities, Oravec said. St. Francis is raising funds continually, and the university also is looking into federal and state grants for the project. Please see Project/Page A12 DELIVERY Subscription or home delivery questions: 946-7480 or (800) 287-4480 22910 0005(1 BMI FOUR 0    5    10 1 Lottery numbers, A2 WEATHER Snow flurries, 26° ■ Forecast, C3 V Antis zoning won’t be placed on ballot By Walt Frank Staff Writer BELLWOOD — It appears Antis Township residents won’t get a chance to decide whether zoning should be adopted in the township. Township supervisors voted Jan. 18 to ask Blair County commissioners for permission to place a referendum question on the Nov. 6 ballot. But a local government specialist said that’s not going to happen. “Zoning is considered to be an advisory question, and Commonwealth Court has ruled that county election boards have no legal authority to place nonbinding questions on the ballot,” Ken Johnson said. Johnson is a local government policy specialist with the Governors Center for Local Government Services, which represents 13 counties including Blair. Please see Zoning/Page A4 It    Pride    Ourselves rf 111 J 00 Bem9the (jLC /|l( I l l    Area’s    Very    Best 11i I1    Because    We Feel Our Customers ITALIAN VILLA Deserve Nothing Less. □ local Business A9, AIO Hospitals AU Obituaries All Opinion A8 p| SPORTS Local B4 Scoreboard B5 t mm □ NATION Classifieds Comics □ UFE C4-12 C2 Movies Night Life Planner Up and coming D3 D4 D2 DI INSIDE IN NATION The last two convicts who escaped from a Texas prison last month surrendered in Colorado after a television interview PAGE Cl t Mirror photo by J.D. Cavrich The Rev. Christian Oravec, president of St. Francis University, explains the upcoming campus renovations. ;

  • Bill Shuster
  • Blair Countians
  • Bud Shuster
  • Christian Oravec
  • David A. Gradwohl
  • David Goode
  • H. Scott Conklin
  • J.D. Cavrich
  • Jack Shocker
  • John Eichelberger Jr.
  • John H. Eichelberger Jr.
  • Ken Johnson
  • Kevin Ott
  • Mark Stevenson
  • Philip Becker
  • Stacey Brumbaugh
  • Stephen Weidemer
  • Tom Worthington

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Publication: Altoona Mirror

Location: Altoona, Pennsylvania

Issue Date: January 25, 2001

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