New Braunfels Herald Zeitung (Newspaper) - June 26, 1987, New Braunfels, Texas
Page 8Commerce & Industry
Herald-Ze/fungf New Braunfels Texas
Friday June 26. 198/California lawyer says lottery a bad bet
AUSTIN (AP) A San Francisco lawyer who keeps a close eye on the California lottery says it is a fraud that takes money from the poor to subsidize the rich.
Robert Gnaizda, founder of Public Advocates, a non-profit public interest law firm, also said Thursday that gambling on winning a state lottery is the worst bet a person can make.
There’s no gambling bet you can make anywhere in the United States that's as bad," said Gnaizda, who
appeared at a Capitol news conference with representatives of organizations opposing a state lottery in Texas.
A proposed constitutional amendment to establish a lottery, viewed by some as a way to help Texas with its financial problems, is pending in the House Urban Affairs Committee.
The House defeated the proposal in the regular legislative session that ended June I
Opposing a lottery Thursday were
representatives of Consumers Union, the Texas Conference of Churches, the Texas Baptist General Life Commission and Texas Impact, another church lobbying group.
Gnaizda said he thought California’s experience with a lottery applied to Texas since both states have large Hispanic and black populations and ‘‘minorities and poor are the clear targets of the lottery.”
‘ People ought at least to know if
... The real consumer fraud is you cannot be a millionaire even when you win a million-dollar ticket.”
they want to get rich they could go to lias Vegas — the cut at the tables is less than 2 percent, so you have 25 times as great a chance of winning at the crap tables in lias Vegas,” Gnaizda said.
“What you have is the state promoting something as a good deal that clearly is not,” he said. “There
is less than I in a 20 million chance that you can win a million dollars.
Consumers alerted to odometer fraud
NKW YORK I AP) Is it new or is it used'' If a car’s odometer is disconnected at the factory, as has been charged in a case against Chrysler Motors Corp., there is no way for consumers to know for sure.
But when it comes to used cars, consumers can take steps to avoid automobiles that may have been driven farther than the odometer indicates.
Odometer fraud is estimated by the U.S. Transportation Department to cost consumers $1 billion a year. Until now, doctored mileage had been identified as only a used-car problem,
The Chrysler indictment Wednesday charged that the company, the automaking arm of Chrysler Corp., sold as new up to 60,000 cars that had been driven by company executives with the odometers disconnected Some of the cars were wrecked and repaired before being sold, according to the indictment.
Chrysler has denied doing anything illegal or improper.
“In a situation like this on a new car. there is absolutely nothing you can do. Zero. Zip,” said Bob Knol. head of the auto test division
"In a situation like this on a new car, there is absolutely nothing you can do. Zero. Zip. There is nothing you can look for if the odometer is disconnected at the factory and then reconnected.”
Bob Knol Consumers Union
of Consumers Union, publisher of Consumer Reports magazine. “There is nothing you can look for if the odometer is disconnected at the factory and then reconnected.”
Most new cars have between IO and 40 miles on their odometers when they are sold, which represents testing and the driving it takes to get the car from the factory to the truck, train or boat, and then to the dealership.
“It is traditional and perfectly normal for plant people to drive production cars off the line
overnight to see how they're doing.” Knoll said. “You can’t just build cars, look at them with electronic stuff, pat them on the head and let them go.”
But the Chrysler indictment charged that executives drove the cars days or weeks at a time, and up to 400 miles with the odometers disconnected.
Federal law requires dealers to keep records on odometer readings. Dealers must sign statements saying the odometer reading is correct as far as they know, and they face civil and criminal penalties for lying.
Tampering with an odometer is a misdemeanor but will become a felony beginning in 1988. The measure, sponsored by U.S. Sen. J. James Exon, D-Neb., increases the civil penalties for tampering from $1,000 to $2,000 per vehicle and raises the criminal penalty from one year to three years in prison.
Used-car buyers have ways to check whether odometers have been “clocked,” or rolled back. The Used Car Book, written by the editors of Consumer Automotive Press and published by Fawcett Columbine in New York,
—l/ooking at the maintenance stickers on the door post to see if the recorded mileage ever exceeded the present odometer mileage. Sometimes a motorist can tell if the odometer has been rolled back by the irregular alignment of its numbers, but this is inconclusive.
-Checking wear and tear. A car with less than 20,000 miles should not have excessive wear on the accelerator, clutch or brake pedals. It shouldn't have a sagging driver’s seat. The metal trim around the ignition lock shouldn’t be dulled by key scratches.
—Contacting the prior registered owner and asking what the mileage was when the car was sold to the dealer.
In many cases, the previous owner’s name can be found at the local department of motor vehicles.
The National Highway Traffic Safety Administration also takes reports on odometer fraud and provides information about odometer tampering to consumers through its auto safety hotline, 1-800424-9393Stocks
Market pulls back from record highs
NEW YORK (API — The stock market declined broadly today, pulling back from Thursday's record highs.
The Dow Jones average of 30 industrials dropped 11.64 to 2,439.41 iii the first half hour of trading.
I/users outnumbered gainers by more than 2 to I in the overall tally of New York Stock Exchange-listed issues, with 318 up, 734 down and 433 unchanged.
Volume on die Big Board came to 27.78 million shares as of IO a.iii. on Wall Street.
Among actively traded blue chips. American Telephone & Telegraph slipped 1h to 28* a; International Business Machines lost 4 to 167‘a, and American Express was unchanged at 36l*.
The NYSE’s composite index of all its listed conunon stocks dropped .77 to 172.78. On the American Stock Exchange, the market value index was off .39 at 337.09.
On Thursday the Dow Jones industrial average jumped 22.64 to 2,451.05, surpassing its previous closing peak of 2,445.51 reached on Monday.
Advancing issues outnumbered declines by more than 3 to 2 on the NYSE, with 931 up, 597 down and 438 unchanged. Big Board volume totaled 173.52 million shares, against 153.76 million in the previous session.
NKW YORK IAP)
High Low I/ast AMK Corp 621 a SP* 817h
Aineritecn s 884 877h 884
AMI Inc PF* 194 19*4
Ain Motors 44 IU 44
AmStand 427** 42'* 424
Amor TAT 28 'n 28 4 284
Amoco 854 847h 854
Armcolnc 10‘h IO IO
AtlRlchfld 93‘« 924 93
Hakerllugh n 22 21*4 217n
BancTexas 7-64 11-128 3-32
Ha ne tex WI 3-32 3-32 3-32
BellAtlan 70S 694 69*4
BellSouth s 417n 41 41*4
Beth Steel 147h 144 147h
Borden OP* DON DP*
Caterpllr 5<> 554 55*4
Celite! 664 6634 66*4
Chevron 604 594 604
Chryslers 35*2 35l4 354
Coastal s 35 344 35
CocaCola 4534 454 45*2
Coleman 37 36*2 364
Colg Palm 484 48*2 487n
ComlMetls 184 18 18*»
DeltaAirl 58 57*2 574
Digitally 169 16734 169
DowChem 867 * 863h 8634
Dressrlnd 304 294 30*4
duPont 1214 120*2 1214
EstKodak 884 88** 88*2
Ensereh 24*4 244 244
Kntexlnc 14*4 14*2 14*2
Johns J ii
364 BakerHughes Int
274 En tex
704 SW Bell
154 WP Pepperell
named Farm Bureau Insurance agent for Comal County
We are pleased to announce that Kenneth Schaefer has been named as a Farm Bureau Insurance agent for the Comal County Farm Bureau. The agency manager for the agency is Will Laubach.
Schaefer will serve the Farm Bureau member families with a full range of insurance coverage needs, including life, fire, and casualty.
Kenneth has a wife, Mary Lou St 3 children. Originally from the small town of Garden City where he was engaged in farming, ranching, etc.
Comal County Farm Bureau
Office Phone 625-6924 (Home) 620-1601Eye Openers
By Dr Henry Hull
WILL WEARING GLASSES WEAKEN YOUR EYES?
When you remove your glasses and find that your naked vision is fuzzy, you're finding out how poorly you see without glasses.
Patients who need a stronger prescription a year or two after getting their first pair of glasses often blame the decline in their ability to see on that first pair of glasses. But, that's seldom the case. The change in vision merely reflects changes in the eyes. As we grow older, the muscles tend to weaken and the lens in the eye grows more rigid.
It is more difficult to explain why ''nearsighted'' children grow more nearsighted until they reach adulthood. But this will generally happen whether or not they wear their glasses. Some optometrists advise nearsighted children (and adults) to remove their glasses for reading if the correction for seeing distances clearly in tarter as with teeing at near.
Regular eye examinations help track changes in your eyes, so that proper correction can be maintained at all times for better vision. Brought to you as a community service byOr. Maury Mall
147 Fredericksburg Road 829-5711
The maximum payout is $35,000 a year, over 20 years, and one-third is deducted for federal taxes, Gnaizda said. By the 20th year, at the present rate of inflation, the $35,000 would be worth about $10,000, he said.
“The poor clearly participate at a much greater rate,” Gnaizda said, quoting one study that showed Hispanics purchase 24 times as many lottery tickets as Anglos. The poor spend 20 times as much, relative to income, as the rich, he
Gnaizda said 34 percent of the proceeds from the California lottery goes to public education, but some educators feel education could be worse off because elected officials may become less committed to tax support for education as a result of the lottery money.
“What you do have really is poor school children are subsidizing by the lottery the education of the affluent, since their parents are contributing a substantial amount disproportionate in most cases,” Gnaizda said.Service privatization an economic decision
NEW YORK (AP) - The privatization movement has bogged down, and one of the reasons it has, according to supporters and promoters, is that some people tend to think of it as un-American.
No more cutting criticism could be made. In the eyes of the privatizers, the true state of affairs is exactly opposite: Doing things through the private sector rather than through government is the American way.
Or it used to be. But now. says economist Ronald Utt, “so entrenched is the notion of big government here and abroad that we easily forget an all-encompassing state is a relatively recent phenomenon ”
A few budget figures describe Utt’s comment. In 1929, total budget receipts for the entire federal government amounted to $3.9 billion, and not all of that was spent. There was a surplus of $700 million.
Government grew during the Depression and through the years of World War II, and it has been growing since.
By the 1960s, government was laying out more than $100 billion. In the 1970s the numbers soared through the $200 billions a year and the $300 billions and the $400 billions, and then the pace quickened.
By 1980, the federal budget was above $500 billion. It topped $600 billion a year later, exceeded $700 billion by 1985 and topped $800 billion in 1986 Although not in comparable
dollars, that’s more than 200 times 1929’s receipts
In view of this enormous and probably dangerous growth, the idea developed that various government services and enterprises might be transferred to the private sector in hopes that they would be more efficiently operated.
Among the ideas proposed were to sell government-operated housing to tenants, turn the postal service over to franchised operators, sell the naval petroleum reserves, turn over federal loans to the highest bidders
But privatization, extolled as a way to get the government off the backs of people, reduce the federal debt, increase the efficiency with which services are delivered and in general stop the growth of bureaucracy, went nowhere.
It was trivialized as some nevi tangled idea, says Utt, who works for the U.S Chamber of Commerce * The average scholar, journalist. public official or politician ..swiftly distanced himself from the concept."
What an irony, he says. Here is a country that from the very beginning stressed private initiative — that was actually discovered and settled by private rather than government initiative — and the critics forgot
Once viewed as the solution of last resort, he observes, “government now is often seen as the only appropriate provider of even the most trivial of services."
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PRICES EFFECTIVE THRU 0/29/87