New Braunfels Herald Zeitung (Newspaper) - March 15, 1983, New Braunfels, Texas
Tuesday, March 15,1983 3
OPEC reaches accord
Cartel cuts price $5; experts doubt it will work
LONDON (AP) — OPEC oil ministers wrapped up 12 days of bargaining with an agreement to cut oil prices by nearly 15 percent and restrict production to keep them there. But many energy analysts doubt the historic plan will work.
The main threat to the accord announced Monday is the likelihood that the Organization of Petroleum Exporting Countries, faced with declining demand for oil, will continue to lose customers to more flexible exporters outside the ranks of the cartel.
“This OPEC strategy is not a strategy that can deal with a shrinking market," said John Mugno, an energy specialist at Citibank in New York. “If the market doesn’t strengthen then this agreement doesn’t make any sense.”
World demand for oil has steadily dropped in recent years, partly because consumer nations have adopted conservation measures and resorted to alternate energy sources.
The 13 OPEC ministers announced after a marathon six-hour negotiating session that 12 of them had agreed to reduce the $34 base price by $5, a
reduction of nearly 15 percent.
The move was the first such cut in the cartel’s 22-year history. It was in response to price cuts three weeks ago by non-OPEC producers Britain and Norway, followed by OPEC member Nigeria, which competes directly with the British and Norwegians for petroleum sales in Europe.
Iran, a cartel maverick, said it disapproved “in principle" of cutting prices, but that it would announce its new prices “soon.”
Other OPEC members said they had not decided when they would reduce their prices, though most are expected to make the cuts retroactive to Feb. I. At $29 a barrel, the OPEC base price is at its lowest level since 1980, when it averaged $28.67 a barrel.
Mexico announced Monday that it will follow OPEC’s lead and lower the price for its top-grade Isthmus crude from $32.50 a barrel to $29 and its heavier Maya crude from $25 to $23. Mexico generally follows the cartel’s pricing policy.
Mohammad Gharazi, the Iranian oil minister, told a news conference the OPEC strategy for stabilizing
oil prices was not Jeopardized by his country’s unwillingness to sign the price cut agreement. Iran did accept the production-sharing part of the accord, which sets an overall production limit of 17.5 million barrels a day.
Several other ministers, including Sheik Ahmed Zaki Yamani of Saudi Arabia, said they were certain the agreement would reverse the downward trend of oil prices that has threatened to break up the cartel.
Many analysts doubt that all 13 members will be able to resist offering secret discounts for their oil in order to boost sales. Iran and Libya reportedly have been discounting for months.
It was the steady and unexpectedly long decline in world oil demand that has depressed OPEC sales and complicated the cartel’s efforts to agree on production limits. It agreed to such a system in March 1982 but the deal fell apart within four months after several members — including Iran and Libya — began selling as much as they could.
Price cut may not mean additional savings
NEW YORK (API - OPEC’s first-ever price cut does not guarantee further reductions in what consumers pay for gasoline and home heating oil — retail prices might even climb a few cents, industry analysts say.
Barring a collapse of the cartel’s agreement on crude oil prices and production, prices at the gasoline pump will stabilize, the analysts said Some said the bulk of the price reductions for petroleum products may already have occurred.
The Organization of Petroleum Exporting Countries announced agreement among its 13 member nations Monday to reduce its benchmark price for crude oil to $29 a barrel from $34 and limit production to 17.5 million barrels a day.
But with world oil prices on the spot market at about $28 a barrel, analysts said OPEC was merely recognizing that its posted prices had been
Charles Calm, an analyst at the investment firm of Sanford C. Bernstein it Co. said that if the price and production agreement holds, prices for petroleum products should stabilize and then might climb 2 cents to 3 cents a gallon monthly for two or three months late this spring.
The consumer will not get any added benefit from this unless wholesalers become convinced the cartel will not stick to its agreement," Cahn said. ‘ OPEC members must not just convince each other, but the consuming world as well."
William Randol. an oil industry analyst at First Boston Corp., an investment firm, said OPEC’s decision would not have much of an impact on prices for petroleum products.
“There could be a few more cents a
Mideast talks go on; deadlock continues
WASHINGTON API - U.S. negotiators try ing to get Israeli troops out of lebanon are returning to the Mideast after high-level talks here with both sides apparently failed to break a deadlock on key issues.
Although some progress was reported after Monday’s talks, the two sides are unable to agree on whether Israel should exercise responsibility for security along Lebanon's border with Israel, U.S. officials say.
Israel insists on keeping some military force in southern lebanon; Lebanon insists that all Israeli troops must leave.
Secretary of State George P. Shultz had met separately with Israeli Foreign Minister Yitzhak Shamir and lebanese Foreign Minister Elie Salem in hopes of breaking the deadlock in the 10-week-old talks
But all sides agreed more negotiations in lebanon and Israel are necessary They will resume in the Middle East Thursday with U.S. participation.
“I believe we will get an agreement,’’ Shamir said after his third meeting in two days with Shultz. "I cannot say it is very near, but I believe we will get an agreement.”
U.S. officials said additional discussions might be held before Shamir leaves Washington later today.
Shamir also met with President Reagan Monday and afterward quoted Reagan as saying: “It’s time
'Bozo' burglar acquitted
DETROIT (AP) — A 22-year-old accused of burglarizing a school last Halloween while dressed as Bozo the Clown has been acquitted by a judge, who said the man probably lacked “the proper crunirial intent.”
Police officers Michael Fromm and Charles Thoms testified during Ralph Cooper’s two-hour trial Monday that they answered a call about a possible burglary at the school Oct. 31. An alarm was ringing when they arrived, but no doors or windows were open, they testified.
Shortly afterward, Thoms looked toward the roof and saw a man droned in a clown outfit falling toward the ground.
gallon out there, but I wouldn’t look for it." Randol said.
Trilby Lundberg, editor of the Lundberg latter, a gasoline industry newsletter, said OPEC's clout as an oil provider for the United States has diminished, with its share of U.S. imports slipping to 42 percent last year from 70 percent in 1977. The U.S. produces a large share of its own oil.
"There is no guarantee’’ that the $5-a-barrel cut would be passed on to American motorists, she said. “We may find out in retrospect that we have had either all or part of our price cut."
The average price for all grades of gasoline has dropped to $1.12 a gallon from about $1.29 last July and a peak of nearly $1.38 in March 1981, according to the Lundberg latter survey of 18,000 gas stations. The average price was $1.18 a gallon in mid-January.
On the New York Mercantile Exchange, gasoline for April delivery rose 2.45 cents to close at 79.45 cents a gallon Monday. While that was up from Friday, it was off from the 83.75 cents a gallon of Jan. 21, before the collapse of the previous round of OPEC talks.
Time running out on embattled jobs bill
WASHINGTON (AP) - Temporary action by the Reagan administration to avert a midnight deadline that had threatened unemployment benefits in 27 states is giving the Senate more time to resolve a dispute over a multibillion dollar jobs bill.
But senators are using the extra time to turn the anti-recession legislation, already grown more costly than a House-pased version, into a grab bag for unrelated issues.
More than 35 amendments remained to be handled by the Senate today, including measures ranging from withholding taxes and sewer grants to San Francisco cable-car repairs, El Salvador, the Environmental Protection Agency and weather satellites.
Senate leaders searched for ways to keep the measure from becoming hopelessly bogged down but did not seem to be making much headway.
"We’ve got to finish this bill,” Senate Majority Leader Howard Baker, R-Tenn., cajoled colleagues on Monday.
The legislation, which as a result of amendments adopted Monday now bears a pricetag of $5.1 billion, also contains money needed to subsidize unemployment benefit payments in 27 states, the District of Columbia and the Virgin Islands.
These funds were to expire at midnight tonight, but with a little jiggling of accounts and emergency loans of $196 million to the states involved, the I^abor
on Monday delayed at least until the
Department the crunch weekend.
That bought the Senate a little extra time — but not much. Baker said “for all practical purposes" the bill must still be enacted by tonight if a final version, reconciling differences between it and a $4.9 billion House version, is to go to the president by week’s end.
The biggest obstacle remained an amendment by Sen. Bob Hasten, R-Wis., to repeal the withholding tax on interest and dividends.
President Reagan has declared he will veto the bill if it contains the Hasten amendment, which is favored by banking interests and which Hasten claims has nearly 60 Senate co-sponsors.
So far, Senate leaders have been unable to figure out a way to disentangle the withholding tax amendment from the jobs bill. And even if they succeed on parlimentary grounds, there is a good chance that Hasten will offer it again to the carefully crafted Social Security rescue bill-
“We would like to keep it off the Social Security bill," said a Baker aide who did not wish to be quoted by name.
Hasten told reporters he wasn't about to give up his battle on the jobs bill, unless he could be promised a vote in the coming weeks on a separate bill on the withholding tax. And that is something Senate leaders until now have been reluctant to promise him.
we stopped talking about each other and started talking to each other.” Shamir claimed to reporters that after a total of nine hours of talks with Shultz the United States now had a better understanding of Israel's position.
“Much more understanding in the United States about our position concerning lebanon was achieved and this understanding will find its expression in the negotiations between the parties which will continue in the area," he said.
But he didn’t answer directly when asked whether an agreement on a troop withdrawal was any nearer as a result of the talks here, which Israel had requested.
“These were conversations between the United States and Israel and not negotiations,” he said. "We have not negotiated on all the details because that was left to the negotiators in the area."
He said that in deciding on a troop withdrawal agreement, Israel wants to see "clear evidence that the Syrians and the Palestine Uberation Organization want to withdraw.”
Shultz has said Syria has agreed to withdraw when the Israelis do and that the Palestinians probably would leave with them. But Shamir obviously has doubts.
Shamir also said Israel would oppose having an international peacekeeping force provide security in southern lebanon as a substitute for the Israelis.
High today will be in the mid 70s, low tonight near 50, and a high Wednesday near 60 This morning’s low was 59. and yesterday's high was 77.
Canyon Iaike registered at 906.29 this morning, the same as yesterday's level.
A Pacific front pushing into West Texas brought scattered showers and thundershowers to the state today, and created dense fog along the coastal olains, where a travelers advisory was issued.
The storm line preceded the front from Southwest Texas northeast into the upper Panhandle. Some showers later today could become severe over the Hill Country and northern and southern sections A travelers advisory continued until midmorning for fog which dropped visibilities to near zero along the upper Texas coast. A small craft advisory has
also been posted for the coastal area, with winds expected to increase to near 30 mph today from the southeast.
Temperatures remained mostly in the 50- to 60-degree range, with the extreme east and western edges in the 40s Readings should turn much colder in the
Panhandle today and over the state tonight and Wednesday. Rain is predicted for most of the state Wednesday, with possibly locally heavy rainfall over South Texas.
North Texas: Windy, warm today. Scattered thunderstorms, possibly severe, developing western portion by this afternoon spreading into central portions by evening. Tonight turning colder with rain and scattered thunderstorms, some possible severe. Wednesday rainy and colder. Highs today mid 70s to low 80s. Lows near 40 northwest to mid 50s southeast. Highs Wednesday mid 40s northwest to low 60s southeast.
Services for Myrtle Schwamkrug of 2093 Kuehler were at 3 p.m. Tuesday at Doeppenschmidt Funeral Home. The Rev. Howard Thrift of New Braunfels officiated, and burial will be at 2 p.m. Wednesday in Forest Park I Lawndale in Houston. Mrs. Schwamkrug, 70, died on Saturday, March 12, at her residence. The daughter of Frank and Louella (nee Bishop I Ridley, she was born on Sept. 30, 1912, in Porter County, Ind. She later married Charles Schwamkrug, who preceded her in death. She was a housewife, a member of First Baptist Church, and lived in New Braunfels since about 1950. She also belonged to the Red Cross Volunteers, Comal County Home Demonstration Club, New Braunfels Music Study, Eagles, Elks, Garden Club, and was a charter member of the N *w Braunfels Art League.
She is survived by three sisters, Carolyn Ridley of Houston, Daisy Doyle of Groveton, Tex., and Ester Seeligson of Andrew, Tex.
Memorials may be given to the American Heart Association.
Nelson C. Fayette
Services will be at I p.m. Wednesday at Doeppenschmidt Funeral Home for Nelson C. Fayette of Route 5, Box 838A, Canyon Lake. Msgr. Anthony Drozd of Canyon Lake will officiate, and burial with full military honors will be at 2:45 p.m. in Fort Sam Houston National Cemetery. Fayette, 68, died at 3:45 p.m. Friday, March ll, at his residence. The son of John and Mae (nee Tyo) Fayette, he was born on Aug. 31, 1914, in New York. On Oct. 2. 1940, in Elton, Maryland, he married Aileen (nee Stewart) Fayette. He was a retired director of the Texas Board of Pardons and Paroles, and also retired from the U.S. Army as Chief Warrant Officer. He was a World War II and Korean War veteran, a resident of Comal County about four years, and was affiliated with the Catholic church.
Survivors include his wife, Aileen Fayette of Canyon lake; a daughter, Valerie Mahler of San Marcos; three sons, Kenneth Lilliback of Houston, Richard Fayette of Colorado Springs, Colo., and Gerald Fayette of San Antonio; three sisters, Viola Miranda
and Bernadette Gregory, both of Watertown, N Y , and Rita Bates of Syracuse, N.Y.; two brothers, Clete Fayette and Leo Fayette, both of
Watertown, N.Y.; and nine grandchildren.
Memorials may be given to the American Heart Association.
Calendar of Events
City Arts and Cultural Commission: 7 p.m. Tuesday, City Hall, downstairs meeting room.
Planning and Zoning Commission: 7:30 p.m. Tuesday, City Hall Council Chambers.
NBISD Board of Trustees: 7:30 p.m. Tuesday, New Braunfels High School library.
CISD Board of Trustees: 7:30 p.m. Tuesday, Central Office, Hwy. 81 W
New Braunfels Art League: 7 p m.
Tuesday, Civic Center.
New Braunfels High School: symposium: “Drugs: Causes and Cures." 7 p.m. Tuesday.
TOPS (Take Off Pounds Sensibly): 7 p m. Tuesday, laurel Plaza Recreation Room.
Rhythm Squares: 7:30 p.m.
Tuesday, River Bend clubhouse.
New Braunfels Iris Society: 7.30 p.m. Tuesday, First Federal Savings and l.,oan.
American Association of Retired Persons: 9 a.m. Wednesday, Senior Citizens Center.
Four Seasons Garden Club: IO ain. Wednesday, home of Janie Garret, 1214 Clearwater.
Canyon Lake Republican Women: 10:30 a.m. Wednesday, Scarborough Hall, Church in the Valley.
United Methodist Women: Lenten luncheon, 11:30 a.m. Wednesday, Wesley Hall.
Rotary Club: noon Wednesday,
The officers found the man unhurt, snoring and smelling "like a brewery,” Fromm said. A television set and several notebooks were found next to the clown.
Cooper said he had gone to a party and didn’t remember much afterward.
Recorder’s Court Judge Henry Heading, in finding Cooper innocent, said he didn't know how Cooper got to the top of the school.
“He probably doesn’t know how he got up there himself," Heading said. "Considering his condition, he probably could not entertain the proper criminal intent."
By STELLA WILDER TUESDAY MARCH 15
Born today, you are one of those unassuming individuals who may, if he does not learn to blow his own horn, be destined never to receive the recognition to which, by talent and accomplishment, he is entitled. You are amusing in the main — and therein lies much of your problem. For to amuse others is not necessarily to impress them with either your intelligence or your emotional stability, both of which you possess in abundance. You have a basic restlessness that may keep you from settling down until well into middle age.
Deeply emotional, you nevertheless find it difficult to express emotions. You have a habit of assuming that others do not — or cannot — feel as you do and would, therefore, scorn you if you were openly affectionate, angry, fearful, joyous, etc.
Also born on this date are: Andrew Jackson, U.S. President; MacDonald Carey, actor; Harry James,
To see what is in store for you tomorrow, find your birthday and read the corresponding paragraph. Let your birthday star be your daily guide.
WEDNESDAY, MARCH 16
PISCES (Feb. 19-Marcb 20) — A little selfadvertising would do you a great deal of good today. But don’t overstate your case.
ARIES (March 21-April 19) — Let your own jovial, friendly nature smooth the way for you today as you attempt to launch a new project.
TAURUS (April 20-May 20) — You may wish at least to consider a new method of operation in order to get an old project moving again.
GEMINI (May 21-June 20) — A major purchase may prove unacceptable. Reconsider where your money’s going; make a new plan of attack.
CANCER (June 21-July 22) — Invest in your own future. A special purchase puts you on the right road to personal expansion.
LEO (July 23-Aug. 22) — Information concerning a
new project is forthcoming — if you will ask your questions in the right quarter.
VIRGO (Aug. 23-Sept. 22) — A get-ngh-quick scheme backfires today. Rescue what you can in the way of material goods and reputation.
LIBRA (Sept. 23-Oct. 22) — You can erase the doubt from another’s mind concerning your ability to do a job if you are sure, quick and thorough.
SCORPIO (Oct. 23-Nov. 21) — A romance may sour suddenly and leave you with few emotional resources to fall back on. Recover your equilibrium.
SAGITTARIUS (Nov. 22-Dec. 21) — Build a new basis of operation on the employment scene. Be willing to take a back seat — temporarily.
CAPRICORN (Dec. 22-Jan. 19) - You may fail in your first purpose today. However, gains made in fringe area should be enough for you now.
AQUARIUS (Jan. 29-Feb. ll.) - You should be able to make your way with relative ease today, especially where new projects are concerned.