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Abilene Reporter-News, The (Newspaper) - February 10, 1970, Abilene, Texas "WITHOUT OR WITH OFFENSE TO FRIENDS OR FOES WE SKETCH YOUR WORLD EXACTLY AS IT 89TH YEAR, NO. 237 PHONE 673-4271 ABILENE, TEXAS, 79604, TUESDAY EVENING, FEBRUARY 10, EIGHTEEN PAGES IN TWO SECTIONS Associated Prea SUNDAY Federal Officials Have of Navy Fraud Swiss Bankers Linked to Big Swindle By JEAN 1IFXLER Associated Press Writer WASHINGTON (AP) Fed- eral authorities have evidence Hint two Swiss aware that (hey were accom- plices in a hun- dred of false documents a string of shadow companies which became the backbone of a multimillion-dollar swindle of (he U.S. governmenl- With the aid of the bankers, Ihe evidence shows, a group of Americans was ahlc to channel more than million into secret Swiss bank accounts before the fraud was exposed and stopped. The Americans, who pleaded guilty IB their parts in the fraud, were scheduled for sentencing Ictiay in U.S. District Court here. They are Francis. N. Hosen- baum, a prominent Washington altorney; Andrew L. Stone, a wealthy St. Louis businessman; Evelyn Price of St. Louis, Stone's executive secretary; Robert B. Brcgman, president of Brcgman Electronics, Inc., of New York; the Chromcratl Corp., of St. Louis and Alsco Inc., of Akron, Ohio. The (wo Swiss bankers were named co conspiralors but not defendants in the case. The fraud has received much publicity but the evidence de- tailing the role of Ihc Swiss bankers has remained in gov- ernment files. The case, officials said, is just one example of Ihc hundreds of frauds and lax evasions be- lieved carried out each year with the knowledge Slid aid of discreet foreign bankers. Simplified, case worked this way: and Hoscnbaum were officers of a company which was the prime contractor on million's of dollars in Navy defense business. They set up two dummy com- panies in the United Slates and fraudulently represented them as subcontractors on the Navy work, "-'tic Swiss bankers sup- plied those subcontractors with fraudulent bills from oilier dum- my European firms for mate- rials which were never ordered nr shipped. The dummy subcon- tractors then "sold" the non-ex- isleiit malmal to the prime con- tractor wlio charged the Navy for it. In paying off the phoney Swiss bills, Stone and Roscnbiumi were able to siphon the fraudu- lent overcharges obtained on Ihe defense contracts out of the counlry. The money went to the Swiss bankers who routed it into ttic Americans' secret accounts in Switzerland. Government officials here say estimating the number of dol- lars fraudulently channeled into 3rd Goad Trial Juror Is Picked EASING TFIU PAIN Medic aboard a U. S. Army medical evacuation helicopter treats a young South Vietnamese boy held by his mother during mission in the Mekong Delta. The boy, who was.slightly wounded in a terrorist incident, was taken to a nearby provincial hospital for further treatment. (AP Wirephoto) Children ignored While Their Mother in Jail? HE Q. Is It true if a mother Is put in jail, there arc no welfare funds to take care of her children? Hut there arc funds to (ako care of her pets while slie is In jail? .A. You must have reference to an article in the news about someone leaving money in a will to care for pels while the owner was in jail. This isn't true in Abilene. The Slate Welfare Office in Abilene provides a foster home for children whose mother is in jail if there isn't a friend or relative to care for Ihem. The children are kept in the foster home until the mother is released or some other arrangement is made. 0. Why (he delay In starting con- struction the new Taylor County Court House? Lots have been cleared lor several months, building material and lahnr costs arc on the increase ycl vrc do nothing (o get slarlcd. Who Is rrsnonslnle anil why? A. Any project Ihis large generally takes two years in planning before construction begins, says John Luther, one of 1he architects. After the job is awarded it's worked into their work- load schedule, then research begins which emails interviews with each occupant of Ihe courthouse lo find his particular needs, and to establish needs 20 years from now. Preliminary plans are then developed and critiqued by courthouse occupants, then taken to the Commissioners Court. From there the final working drawings and specifications are developed for use by the contractor. Luther said officials purposely delayed putting Ihis on the market as they feel lower bids can be obtained when the market isn't flooded with large projects. (Coliseum and airport projects in tbe same bond issue are complete and the civic center is well on ils way.) He said plans should be completed by May, and conslruclion should begin in June. Q. I was wondering If there Is an admissions Ice at the Billy Graham crusades like Ihc ore at Anaheim illum in California a few monlhs ago? The telecast cost so much, I thought maybe (hey charged something to attend. A. There is no charge for admission but an offering Is taken at the crusade will Ihe By IvLLIE FlUCKEIl and BETTY GRISSOM meetings. Reserved seats are some-, limes set aside for people who travel long distances or for large groups of people who request in advance and there's no charge for these seats either. Could you tell me. who Bogcr SlaubarfTs favorite receiver was while at Navy? A. We checked with Roger at the Dallas Cowboy Office and he says it was Skip Orr. Q. would like lo know why on (lie Cable TV, wilhout warning, viewers must he suhjcct to program change and (he fish In an aquarium routine. H Is more disgusting to get Interested In a program and In the middle of It have the fish howl appear, after missing (he flrsl 30 minules of a second tholce program. A- The Automatic Clocks at thc- Cable TV station sometimes fail to black out a program before it starts. When (he mistake is noticed the cable personnel are requiicd lo black it out because the local TV station is showing the same program later that evening, says an official at the Cable Service. The problem is the cable and Ihe local station are both trying lo bring ABC and CBS programs (o this area and now show the same program on both stations. This is very confusing because the local station and the cable are subject lo changes in programs for many reasons, some- times at the last moment. Address questions lo Action Line, Bov 30, Abilene, Texas 796M. Names wilt not be used but questions must be signed and address given. To Enter Britain FRANKFURT, Germany (AP) Ranjan Vaid, an Asian woman from Kenya whose quest to enter Great Britain has spanned three continents and about miles, will be allowed to enter England, a lirilish consulate spokesman official said here BAIRD Self-defense possibly be an issue in murder trial of Curtis Sherman Goad, 26, of Cross Plains, charged in the shooting ilealh of Cross Plains City Marshal Bryon Richardson, according to questioning in jury examination. Another juror was selected Tuesday morning for Ihe murder trial of Goad. Albert Betchcr of nt. 1, Ovalo, the first potential juror examined Tuesday, was selected. Two olhers, D. D. Hickcrson of lit. 2 Clyde, and Bruce Williams of Baird were chosen Monday. Goad is charged in the shooting of Richardson July 2. Ttichardson died Aug. I in Hcndrick Memorial Hospital in Abilene. Attorneys had predicted earlier that it might take most of the week, if not the whole week, lo empanel a jury. Some involved in the trial feel that Ihe case has received so much area publicity that, it may fap Impossible to get an impartial jury in Baird. Altorney Charles Scarborough of Abilene has been appointed to defend Goad. Disl. Ally. Kd Paynler is prosecuting, assisted by Attorney Dill Thomas, also of Abilene, a former district attorney. Al Hirt Hit With Brick At Mardi Gras NEW ORLEANS (AP) Trumpeter Al Hirt, struck in Ihe by a brick while riding on a Mardi Gras float Sunday night, said Monday he would not parti- cipate in another parade until the violence associated with Mardi Gras is stopped. Hirt WHS taken from the Krewe of Bacchus float lo a hos- pital where he received 12 stitches to close the cut on his mouth. Hirl said Monday he would have tn cancel weekend engage- ments in Albany and Atlanta, Ga. "This is going lo cost me a lot of he said. "I'll tell you one Hirl said. "This is my last parade, at least until our cily fathers take a hard look at all the violence in Mardi Gras this year." NEWS INDEX Amusemenls 2A Bridge 8B Classified 5-8B Comics 48 Editorials 2B Horoscope 8B Hospital Patients 5A Obiluarics 4A Sporls This Man's Arr 2A To Your Good Health____7B TV Log 8B Women's News 3B OIL SLICK KILLS I5IRDS Spectators view rows of birds killed by an oil slick at Martha's Vineyard Island, near Edgarton, Mass. Some 300 Inrcls were rescued Sunday and cleaned by the Prevention of Cruelty to Animals and volunteers. The Coast Guard failed lo locate Ihe oil slick but found a strange substance, believed lo lie a form of algae. (AP Wirephoto) UF Agencies Will Get Full Allocations Again The United Fund agencies again this year will receive their full allocations, United Fund president rtaymond Elliott announced this morning. Although the goal of was not reached during the campaign which closed Dec. 29, Elliott said Ihat, through the dedicated efforts of many volunteers, additional funds had been pledged and collected which enabled the United Fund to make the full allocations. The total amount pledged by Dec. 29 was since that date, Elliott said, in addi- tional funds had brought the total lo dale to New officers for 1070, as well as new board members, were elected at the annual meeting in the Windsor llolel aflcr a report from the nominating committee. Walter Johnson was elected president. Oliver Howard will serve as first vice president and Raymond Elliott, as second vice president. Leslie Ellis was elected treasurer. New board members elected to three-year terms were Judge J. Neil Daniel, George Hall, Otey Cannon, R. ,T. Cummings, Bob Brewster, James Murphy, Hoone Powell, S. M. Moore, C. Smith, J. B. Fnoshce, Joe Ilowcll, Mrs. Theo Nichols, Jim Anderson, II. C. Xachry, Bob Springer, and Joe Alcorta. WALTER JOHNSON new UK president Nominating committee mem- bers include chairman Raff Hardy, K. jr. Perkins, Mrs. Walter Johnson, Mrs. Davis Scarborough, John Wright and D. F. McCarty. Outgoing president Haymond Elliott lauded Ihe efforts of those and contri- butors who "gave so unselfishly of their lime and resources in helping us have another suc- cessful UF campaign." lie added, "Success makes it possible for us again to meet Ihe Avalanche in Kills 42 VAI, D'ISERB, France (AP) An avalanche of fresh powder snow, unleashed by one of tiie Alps' worst blizzards in memo- ry, rolled a half mile over cars and .through a vacation camp dining room loday, killing 42 and injuring more than 50 per- sons officials reported. The Swiss Avalanche Re- search Center in Geneva said Ihe death loll was Europe's highest since 1900. A series nf snow slides in Austria In killed more than 100 people, but In a number ol different com- munities. The rush of snow into Val d'Iserc, pushed by winds up lo 60 miles an hour, sucked Ihc roof away from a small hotel, dragged aulos 150 yards anil ran over concrete walls. Most of the victims were thought lo be young French, Belgian or West Ger- al a low-cosl va- cation center run by the Union of Fresh Air Centers. There were 599 guests al the center and about 50 supervisory per- sonnel, First rcpo-ls indicated about 30 of Iho dead were skiers (ram tr.e ccnlcr, caught while eating breakfast. The remaining dozen appeared lo he workers al the ski complex. The avalanche struck at a.m., rushing 600 yards down the southern flank of Ml. Solaisc and crossing a national highway before hitting the vacalicn cen- ter. Avalanche experts said the snow could have moved at a speed approaching 120 miles an hour, minimum needs of the agencies whose programs arc so essential lo the good life of our com- munity." "I consider our campaign last fall lo be a significant fund- raising said campaign chairman Doyle Gallon. "The cost o! goods and services is spiraling upward, and new programs arc needed lo meet the needs of our community in I hose changing times. These factors combine lo continually lift the United Fund goal to new heights." "The significant growth in giving by our employe groups is laying Ihe foundation for successful campaigns in the Gallon stated. "There is a growing realization that every person in Abilene directly or indirectly benefits from the programs of one or more of the 22 United Fund agencies. Since I960 the giving from employes has more lhan doubled. 11 has grown from to in 1969 for 1970. Employes want to be part of the campaign and do their 'fair share'." "However, this is not a time lo rest on our warned Callon. "All about us we can sec areas in which our member agencies can provide more and belter services. 1 feel conlidcnt that our community will rise to Ihe challenge. Statistically we can do it. As a matter of practicality I know that we will (lo it." At the meeting 16 President's Awards were presented for out- standing communily service to Set liMTEn, ?g. 4A "WEATHER U.S. DEPAHTMEPJT OF COMMERCE ESSA WEATHER BUREAU (Weairxr Mlp, P3. JAJ ABILENE AND VICINITY (43 mile rad us] Partly cloudy la clx-tfy and warrrrtr today and Icn'gM; rvoslly and rnild wcdnnday. High today. Around 61; lew Iwifchi, near WedMVday, near 70. Soulherly 10-15 p p.h. and low for ending 9 a.m.: 5J and X, High vxJ bw last year: 45 foreign bank accounts each year "defies but cer- tainly runs into the hundreds of millions. They say Ihcy find il almost impossible lo break up such schemes unless someone on the inside cooperates. The Navy fraud case wrts broken by Assl. U.S. Ally. Sey- mour Glanier, chief o[ the Frauds Prosecutions Unit of the U.S. Attorney's office here. He was able, through court action, In force Swiss banks (o open their bonks and files. A 30-couul indictment was re- turned in August, 19G8, against the six defendants involved in the case. Stone and Itosenbaum pleaded guilty last October lo nine counts each rfnd the other defendants lo one count each. Each count carried a maximum penalty of five years in prison and in fines. The Indictment named as co- conspirators Hans Scnn, an offi- cer and director nf the Hank Fur Handel und Effeklen of Zu- rich; that bank, ttid Walter A, Mps, vice director of Ihc Union Hank of Switzerland branch at Aarau, Switzerland, l.ips has since left the Union Bank and opcncil his own finance and business advisory service. Scnn still is employed by the Bank Fur Handel. Swiss authorities say no charges brfvc bean filed against anyone there, but .luslicc De- partment sources here fay evi- dence is being turned over to Swiss aulhorilics at their re- quest. Ssviss ollicials refused lo comment when asked if an investigation was under way. Throughout the ease, U.S. in- vestigators sSy, Swiss bank offi- cials sccmod more interested in keeping their bank secrecy laws intact lhan in helping uncover Ihis fraud. When Iho American defend- ants pleaded guilty to pails of the federal indictment here, the olhcr counts were dropped and the matter never came to trial. Therefore few details of the me- chanics of the fraud became publicly known. However, The Associated Press has now obtained docu- ments from Ihc case which fed- eral investigators say is one of the biggest swindles of the Unit- ed Stales government in ils his- tory. Between February, 1362, and January, ]967, the Navy award- ed more than million in con- tracts for 2.75-inch rocket launchers for air-to-air ground missiles widely used in Viet- nam. Tlie contracts were awarded on a sole-source basis, that is, to one company without compctl- livc bidding. In Iho beginning, that company was Chromeraft, which billed ilself as "The Dis- tinguished Name in Dinette Fur- niture." In June, I960, Chromcraft and Alsco merged, and Ihe St. Louis rocket launched operation chang- ed ils name lo the Techfab Division of Alsco. Nothing else changed, however, and the Navy conlinued awarding Ihe contracts to Techfab. The fraud- ulent overcharging on Ihc de- fense contracts continued. Rosenbaum was a director and special counsel first fnr Cliromcraft and then for Alsco- Techfab from January, ]Q63, through the time the fraud was discovered and stopped in early 1967. During this period, Stone was the principal stockholder and chief executive officer of the companies. Stone and Rosenbaum were the prime movers in the fraud. See SWISS, Pg. 2A Sunset lAil lumel Imlghl: lodayl NEED CASH? took around the house and garage for those Hems ihct you no longer use. Sell Ihem in the Family Week-Ender FRI.-SAT.-SUN. 3 Lines 3 Days ExTenifen Rtfgrtd il TTiTi Rid Approximately 13 No Phona Orders Pleat a Only CASH IN ADVANCE YOU CAVE il.95 ABILENE REPORTER-NEWS DEADLINE THUR5. 3 P.M, ;