New Braunfels Herald Zeitung (Newspaper) - July 13, 1983, New Braunfels, Texas
New Braunfels Herald Zesting Wednesday, July 13, 1983 7 AState campaign investigation continues
AUSTIN (AP) — The Trivia County district attorney’s office, already investigating campaign contributions to Attorney General Jim Mattox, is looking into the campaign records of other statewide officers, the Fort Worth Star-Telegram reported today.
The district attorney’s Public Integrity Unit recently obtained copies of 1962 campaign reports and financial disclosure reports for Mattox, unsuccessful gubernatorial candidate Bob Armstrong and Land Commissioner Garry Mauro, according to the newspaper.
Armstrong and Mauro, like Mattox, received substantial campaign contributions from South Texas oilman-rancher Clinton Manges.
The unit also obtained similar reports for the nine justices on the Texas Supreme Court, the Star-Telegram reported.
Two of the justices, William Kilgarlin and Ted Z. Robertson, received campaign contributions from Manges or his lawyer during
their campaigns last year.
District Attorney Ronnie Earle said Tuesday that his office was investigating only Mattox and would not say why the other records were requested, according to the report.
“At this point, we’re only looking at the (campaign) reporting allegation that wa made public in the media,’’ Earle said. “There’s only one investigation going on right now. We don't have anything else to investigate."
The Dallas Morning News has reported Mattox’s brother and sister obtained a $125,000 loan from Seattle First National Bank only two days before Mattox began making loans to his campaign.
Mattox’s siblings repaid their Seattle loan with interest the day after Mattox’s campaign repaid Mattox his loan with exactly the same amount of interest, the News reported.
When Mattox's brother and sister were
dealing with the Seattle bank, Manges had loans of his own there totaling $40 million, according to the News.
Manges and his political action committees contributed $50,000 to the Mattox campaign.
As attorney general, Mattox has represented the state in Manges’ lawsuit to regain $1.5 billion in oil and gas money from Mobil Oil Corp. Manges and the state claim that Mobil and other leaseholders on Manges’ Duval County ranch violated their leases in the 1930s and owe past royalty payments at current market value.
The state and Manges would split the payments if Mobil loses the lawsuit.
Mauro recently worked out a settlement over a lease dispute with Exxon Corp. that will benefit Manges by about $1.4 million and the state by about $2.6 million.
Mauro said he welcomed the inspection of his records and alleged that large oil companies were spreading rumors about him
because of the negotiated settlement with Exxon
“We’ve made a lot of people mad who are leaking things to the press," Mauro said “Any kind of investigation they (the district attorney’s office) want to do, they’re welcome to visit with my accountant. All my dealings are going to be open and aboveboard ”
Armstrong, who received $195,000 in contributions from Manges to his unsuccessful bid for the Democratic gubernatorial nomination, could not be reached for comment Tuesday, the Star-Telegram reported Kilgarlin returned a $25,000 contribution from a Manges PAC, but accepted at least $10,000 in contributions from Manges' lawyer, Pat Maloney of San Antonio, the newspaper reported.
Robertson benefited by at least $110,000 dunng his campaign last year from a political action committee that operated on his behalf and was funded by a Manges-backed PAC,
according to the Star-Telegram
Attorneys in a suit brought against by the family of the late H P. Guerra recently asked the two justices to remove themselves from the case because of extraordinary large campaign contributions'’ that create “an appearance of impropriety."
The motion followed a high court ruling that reversed the trial court, reduced the «nwig^ of damages the family would receive from Manges in the land-lease case and gave Manges control of the mineral leases in question
Robertson said Tuesday the investigation would not expose anything that had not been listed in campaign disclosure reports
‘ All I’m trying to do is my job," Robertson said My job is to decide them 'cases) to the best of my ability "
Braniff, American want to drop ail claims
FORT WORTH (AP) -* 'American Airlines and its former qrch-rival, grounded Braniff International, have asked a federal bankruptcy judge to approve a settlement under which both carriers would drop all current and potential claims against each other.
The proposal, filed in U.S. Bankruptcy Court here Tuesday, calls for American to make a cash payment of $6 5 million to Braniff and drop out of all further bankruptcy proceedings involving Braniff.
U.S. Bankruptcy Judge John Flowers scheduled a July 23 hearing to consider the proposal The airlines issued a joint statement saying the agreement “will settle all controversies between the parties including claims and counter claims arising out of the bankruptcy proceedings."
• American and Braniff officials also said in the statement that the agreement also will “provide for establishment of norma) commercial relations between American and the Braniff successor contemplated by Braniff s plan of reorganization."
Under Braniff's plan, the Hyatt Corporation will invest $70
million in putting 30 Braniff planes in the air and 2,000 former employees back to work.
Meanwhile, the reorganization proposal received the approval Tuesday of Braniff's 3.000 secured bondholders, who hold about $100 million of the airline's $1 billion debt.
“We are recommending it," said bondholders spokesman Anthony Walsh, who had been critical of the plan.
But Hyatt Chairman Jay Pritzker, who met with Walsh and others for several hours in bankruptcy court late Tuesday, expressed little optimism about the agreement.
“Until tomorrow we won t know,** said Pritzker, referring to a court hearing set for today to consider Braniff's financial disclosure statement.
For travelers, the American-Braniff agreement means the two airlines will accept each others tickets and will provide joint fares on connecting flights, officials said.
David Bonderman, a Braniff bankruptcy lawyer, said the cash payment “will be very helpful to us" and would be invested in flying operations.
Teachers want $2 billion plan
AUSTIN (AP) — The Texas Federation of Teachers has proposed a pay hike that would put a $40,000 salary within reach of veteran teachers who perform “above and beyond the call of duty."
The federation's $2 billion plan also would give Texas teachers the right to strike.
“In the private sector, workers have the right to withhold their services — simply put — the nght to strike. We believe educational employees should have the same right," the federation said “Arguments pro and con can be given by the hundreds. Our rationale is that it is better to withhold services when grave danger is present for
children and workers, than to simply continue to accept the mediocre to poor conditions which are present in many of our Texas schools," it said John Cole, TFT president, suggested Tuesday that the cost of the federation's plan could be covered by raising state oil and gas production taxes or by higher gasoline and "sin” taxes, such as on alcoholic beverages and cigarettes Cole told a news conference he had presented the education plan to Gov Mark White, and that White had said he would read it.
Approximately $600 million of the $2 billion would pay for an immediate 24 percent teachers pay in
crease. which White proposed — without success —
to the recent legislature.
Other proposals would require teachers to serve a one-year paid internship and a two-year probationary penod before being certified Teachers designated as ‘ master teachers" would be rewarded with salaries 25 percent higher than they normally would receive.
Under the federation s plan, the position of school principal would be replaced by a 1 master teacher" selected by the faculty each year Other duties of the pnncipal would be delegated to a dean of student affairs and business manager
Deliberation continues in Tafoya tax trial
SAN ANTONIO (API — Eugene Tafoya drew thousands of dollars in “hard to trace" cash from former CIA agent Edwin Wilson for cloak-and-dagger work, but failed to report a cent of it to the U.S government, prosecutors told a jury hearing his tax fraud tnal.
Jurors deliberated about three hours Tuesday and planned to resume this morning.
Tafoya and his wife. Betty Jo, are charged with underreporting their gross income on their tax returns for 1960 and 1961. If convicted, each could receive up to six years in prison.
Tafoya, who worked for Wilson in Libya, was convicted of misdemeanor assault in the 1980 shooting of a dissident Libyan student in Colorado. He faces charges filed after a 1979 car bombing incident in Kitchener. Ontario.
The former Green Beret contends he received only ‘ penny for penny” reimbursements for expenses
from Wilson — not salary — along with some cash gifts or loans Testifying in his own defense, he admitted receiving $3,000 rn cash from Wilson for the Fort Collins, Colo., shooting, but said it was for his out-of-pocket expenses “Hundred dollar bills permeate this case." Assistant U.S. Attorney Daniel Fromstem told jurors Tuesday. “Everything is cash — good, hard cash — hard to trace, easy to spend People like Mr Tafoya don't get checks ”
Tafoya's court-appointed attorney, John Barrett of Austin, said Tuesday that prosecutors clouded the tax issue by producing witness after witness who spoke briefly about money and spoke at great length about other things "
“The sole and only question you have to decide," he told jurors, "is what was in his mind when he signed those income tax returns
Re kind to your feet let your
fingers do the walking in
Reagan tax expert says more increases unlikely
WASHINGTON (AP) — Despite congressional plans for more taxes to reduce the federal deficit, the Reagan administration’s chief tax expert sees little likelihood of increases in the next two years.
"I don’t see any real possibility of a tax increase (taking) effect in 1964 or 1965," says John E Chapourn, assistant treasury secretary for tax policy.
In an interview with The Associated Press, Chapourn said Tuesday that congressional committees may try to put together a tax package to comply with their own budget blueprints
“I think we will oppose that, and if so. I don't think they can be successful in doing it," Chapourn said.
The budget plan requires Congress to raise $12 billion for fiscal 1964, which starts Oct. I. But Chapourn said he thought “most people recognize" it
would be “virtually, physically impossible to raise ’ that much money next year.
The budget plan, which Congress uses as a guide for spending and taxing legislation, also calls for tax increases totaling $61 billion in fiscal years 1965 and 1966 as a way of reducing the enormous budget deficts Under the budget plan, the deficit will reach $179 3 billion in 1964
With a stronger economy, the government expects to collect more taxes from businesses and individuals and pay out less in benefit programs for the jobless and others applying for help in a weak economy.
Even so. he said the adnunistraUon is "not going to give up" on a proposal that calls for “standby" lax increases to raise $146 4 billion from fiscal 1966 through 1988
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