University Daily Kansan, July 27, 1984
Page 2
NATION AND WORLD
News briefs from United Press International
Drugs found in operator of crashed Amtrak train
WASHINGTON — Small traces of cocaine and marijuana were found in the signal operator who was at the switch when two Amtrak trains collided in New York this week killing one person and injuring 137 others. Congress was told yesterday.
John Riley, head of the Federal Railroad Administration, also disclosed that the operator initially told a dispatcher he had given a northbound train permission to proceed — despite a written order to stop it.
transportation subcommittee Riley said federal authorities believed human error contributed to the accident, the latest in a series of four fatal Amtrak accidents this month. But he said no conclusions had been reached
Following the accident Monday, which occurred on a viaduct 80 feet above the streets of New York City, the signal operator told the dispatcher he had given no such approval. Riley told a Senate transportation subcommittee.
but he said no connection could. Riley also stressed that because of the low amount of drugs found in the signal operator, he did not believe they played a role in the accident.
FCC eases ownership restrictions
Since 1953, the FCC has prohibited any one group from owning more than seven stations in each of the three categories or more than five VHF television stations.
WASHINGTON - The Federal Communications Commission, citing a communications boom in America, voted yesterday to end a 31-year-old restriction and let broadcasters own an unlimited number of AM, FM and television stations by 1990.
The decision, which could revolutionize the industry, sets up a six-year transitional period during which broadcasters will be allowed to own 12 each of AM and FM stations, plus up to 12 television stations — either UHF or VHF.
The action brought a quick outcry from both parties in Congress. Members of the House and Senate urged hearings on whether the rule change might encourage monopolies in the television industry.
Only one of the victims was part of the demonstration that was mostly made up of about 500 college-age youths, hospital officials said. No arrests were reported.
Bally in Manila leaves 7 injured
MANILA, Philippines — Riot police hurled tear gas canisters at anti-government demonstrators yesterday for the second time in a week, touching off panic among hundreds of rush hour commuters and injuring at least seven people, including an infant.
The confrontation occurred as the demonstrators, led by Agapito Aquino, the brother of slain opposition leader Benito Aquino, headed home after a two-hour rally called to protest the use of force in dispersing protests.
Castro's sister urges U.S. to fight
A special commission conducted an inquiry into Aquino's murder and plans to release its report to coincide with the Aug. 21 anniversary of his death. Aquino was slain as he returned from self-exile in the United States.
WASHINGTON — Juanita Castro, the sister of Cuban leader Fidel Castro, used the 31st anniversary of her brother's first attempt to overthrow the Batista government to urge the United States to fight his communist government with "military and social measures."
She appeared at the White House Wednesday, the day before the 31st anniversary of the overthrow in 1959.
Castro, who lives in exile in Miami, serves as an adviser to the White House.
National Security Adviser Robert McFarlane charged that despite attempts by presidents dating back to John F. Kennedy to reach an accommodation with Castro, there had never been any let up on "Cuba's part to retreat from its commitment to spread revolution" in the Western Hemisphere.
Reagan may lift Polish sanctions
WARSAW. Poland — Poland condemned President Reagan for penalizing Poles as well as the government with economic sanctions, but hours later White House officials announced some of the restrictions might be lifted next week.
Under the ammendy, 652 political prisoners and 35,000 criminals are scheduled to be released by Aug. 21. Reagan has said the freeing of political prisoners is a major consideration in his decision whether to lift economic sanctions.
The criticism came on state-run television Wednesday as authorities freed 12 members of the outlawed Solidarity union as part of an amnesty to mark the 40th anniversary of communist rule.
Late Wednesday, administration officials said Reagan was taking steps to remove at least two sanctions — against commercial air rights in the United States for the Polish national airline LOT and cultural exchange agreements.
GM floored by workers' demands
DETROTT — General Motors Corp. officials, stressing the need to keep up with the Japanese, today responded to United Auto Workers demands for restoration of $3 billion in contract concessions.
GM officials said a member of their bargaining team actually slipped off his chair in surprise when the contract demands were made.
Union members in 1982 granted GM $3 billion in concessions through freezes on wages and cost-of-living allowance benefits and the elimination of 26 paid personal holidays.
In nearby Dearborn, UAW bargainters continued presenting their "wish list" to Ford Motor Co.
Ford yesterday reported a $909 million profit for the second quarter, and analysts expect GM's earnings to be over $1 billion when they are reported today.
Current contracts covering 350,000 workers at GM and 114,000 at Ford expire Sept. 14.
Stowaway,14, sent back to Israel
TEL AVIV, Israel — A 14-year-old boy outwitted security guards at Israel's main airport and stowed away on an airliner to Romania to visit his grandmother, airport police said yesterday.
The boy's surprise stay ended when the his grandmother turned him in to Romanian authorities because he "nagged her to death and caused a lot of trouble," said Aryeh Bibi, airport police chief. Romanian police put him on the next flight to Israel.
The Romanian-born Israeli teen-ager, who was not identified by police, evaded the airport's tight security and flew out of Ben-Gurion airport without a passport or airline ticket.
"I just wanted to see my grandmother," he told Israeli police. "I did nothing wrong."
The boy probably would be charged with departing the country illegally, Bibi said.
WEATHER
Today will be mostly sunny with highs in the low 80s. Winds will be blowing from the northeast at 5 to 15 mph. Skies tonight should be clear. Temperatures will drop to the upper 50s.
The extended forecast calls for a chance of rain on Sunday and Monday. Highs will remain in the upper 30s to low 90s with lows in the 60s.
of clear. Temperatures will drop to 80°s Tomorrow, temperatures will range in the upper 80s to lower 90s. There is a slight chance for precipitation. The lows should be in the mid-60s.
FDIC bailout planned to save faltering bank
By United Press International
WASHINGTON — In the largest bank bailout in U.S. history, federal regulators announced yesterday they would buy $5.1 billion in troubled loans held by Continental Illinois Bank of Chicago and replace its top managers with two proven captains of industry.
William Isaac, chairman of the Federal Deposit Insurance Corp., said the government stepped in to save Continental — once the eighth largest bank in the nation — in part because it held deposits from 2,100 smaller institutions.
"You would have had scores of small bank failures if Continental Illinois had been handled differently," he said.
THE RESCUE PLAN devised by the FDIC, the Federal Reserve and the comptroller of the currency gives Continental, which almost foundered under billions of dollars in bad loans, a long-term line of credit, freedom from its worst loans and a new management team led by retired Standard Oil chairman John Swearingen.
The multibillion-dollar bailout will be financed with FDIC funds and does not involve tax dollars, Isaac said.
Continental's management and shareholders will be treated as if the bank collapsed, he said, and the
IN TURN, the FDIC will take over $5.1 billion of Continental's shakiest loans, now actually worth as little as $3.5 billion, and assume a $3.5 billion loan the Federal Reserve Board gave Continental when its troubles first came to light.
Under the rescue plan, the FDIC can lay claim to 80 percent of the bank's stock, and it has veto power over new bank directors.
bank's assets will be reduced to $30 billion.
Treasury Secretary Donald Regan did not support the plan, arguing that it involved "an unauthorized and unlegislated expansion of federal guarantees." But after being told by the Justice Department the plan was legal, Regan did not move to block it.
The plan will take effect within 60 days if Continental shareholders support it. They must choose between getting 20 percent of a bank controlled by the federal government or all of a bank that would be declared insolvent.
A key element of the plan is the demotion of the present management and infusion of new financiers into the bank's top posts.
Swearingen, 65, will become chairman and chief executive officer of Continental's holding company. William Ogden, 57, a former vice chairman of Chase Manhattan Bank, will be chairman and chief executive officer of the bank.
Both will be paid $600,000 a year and be given stock options.
Retired Bronx carpenter wins richest jackpot ever
NEW YORK — A retired Bronx carpenter living on disability checks yesterday won New York state's $20 million Lotot jackpot, the richest prize ever awarded to a single lottery player.
He said he did not expect his new multimillionaire status to change his life dramatically and said he would like to grow tomatoes in his back yard.
"I was stunned," said Vencero Pagano, 63, flanked by his wife, Angelina, and two sons, Carmine Lotto and Lotto headquarters in Manhattan
He said he watched the drawing of the six winning numbers on television Wednesday and woke up his wife to tell her they were multimillionaires.
By United Press International
Reagan expected to OK bill to allow religious meetings
"I said, 'I think we won, hon,'" Pagano said. "And then we
TONY'S
By United Press International
IMPORTS DATSUN
reagan was expected to sign the bill because of the equal access provision.
Opponents of the measure, meanwhile, predicted "a decade of litigation" if the bill became law.
The Rev Barry Lynn of the American Civil Liberties Union said passage of the bill was "half a victory" because it would make it far easier "for even the most controversial and unpopular student political groups to use school facilities."
WASHINGTON — Aides said yesterday President Reagan was expected to sign legislation authorizing student-initiated religious meetings in public schools, but opponents predicted a decade of litigation concerning the issue.
The bill, known as the Equal Access Act, allows students to hold religious meetings on public school premises before or after school hours but does not allow outside adult preachers or religious leaders to run the meetings.
Reagan has been a strong supporter of the bill, especially following the defeat of his proposed constitutional amendment on school prayer, and during a news conference Tuesday he made it one of six legislative priorities.
The house that service built PARTS * SALES * SERVICE
THE EQUAL ACCESS Act was attached to a bill providing almost $1 billion in federal money to train science and math teachers — a bill the administration has expressed some reservations about because of the cost. White House aides said yesterday that, despite the cost,
"No longer will a school be able to bar students who want to organize for a nuclear freeze or discuss birth control or form a gay rights club," he said.
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The American Jewish Congress vowed to make litigation a reality.
Theodore Mann, noting recent lower court decisions against other versions of equal access legislation, said Congress was "irresponsible" in passing the measure.
The American Jewish Committee said it would "closely monitor how this controversial law is implemented and will remain ready to challenge unconstitutional practices that grow out of its administration."
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couldn't sleep anymore."
Union disability and Social Security checks have provided Pagano with a comfortable - but not luxurious - retirement, he said.
Dressed in a blue and white striped polo shirt and blue polyester shacks, Pago said he bet $5 and picked the winning numbers at random — some from a telephone number, and the others were numbers he saw on the side of a taxi cab.
He will get an initial payment in two weeks of $761,904 after taxes and then will receive 21 more annual payments.
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