The Hereford Brand (Hereford, Tex.), Vol. 78, No. 72, Ed. 1 Thursday, October 11, 1979 Page: 1 of 18
eighteen pages : ill. ; page 21 x 15 in. Digitized from 35 mm. microfilm.View a full description of this newspaper.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
K
♦
The Hereford Brand
—
CLEARj
78th Year, No. 72
18 Pages
19*
Hereford, Texas Thursday, October 11.1979
Late Rally Slows Stocks’ Downslide
*♦♦♦
¥***
4141
Mortgages
Market
Decline
l
Continues
(
A
-4
ite
%
d
Inside New City Hall
Vote Slated
SALT n Delay Said Possible
County Jail Prisoners
Castro ‘Happy’ To Be
Indicted for Escape Try
Visiting United States
(Se• CASTRO, Peg 2)
what he is signing.
V
4
v
)
2
May Be
Scarcer
With construction of the outside of the new city hall completed,
workers have been busy on the inside lately, trying to get the structure
ready for occupancy some time In December. The city hall, when it is
completed, will replace the now-used 52-year-old building, which will
2
., V
defense spending.
Others, including Sen. Howard Baker.
R-Tenn., complained that the president
has. in effect, accepted a status quo in
Cuba that he originally said could not be
tolerated. Sen. Henry Jackson, D-Wash.,
the only Democratic legislator appearing
on the program voiced similar com-
plaints.
But in New York City, Sen. George
McGovern. D-S.D., said that rather than
E
be torn down to create parking space. The new building will contain
approximately 18,000 square feet, of which approximately one-third
will be for the police department. [Brand photo by Paul Sims]
the attempted escape.
District Attorney Roland Saul said
today he did not know when the case
would come to trial.
Bassett was in jail for allegedly stealing
cattle from Western Feed Yards in
March. He has been indicted three times,
including once last week, in connection
with the incident.
Daniels, a trustee, was in jail on a
charge of theft by check.
Others indicted last week by grand
jurors included Santos Marquez, escape;
Alfred Darrell West, felony driving while
intoxicated; Rolando Rodriguez. theft:
Rhonda Kay Lewis. forgery and passing:
Jack Comrade. theft: and Narcissio Lucio,
attempted murder.
Marquez is charged with escaping from
Deaf Smith County Jail while he was free
on a work-release program. Marquez was
missing for several weeks before the
sheriff's office located him in South
Texas.
Several felony trials and plea hearings
arc scheduled for the next two weeks,
including the murder trials of Ballentine
Murillo and Nick Romo.
A Member of Most Families in the Hereford Trade Area
on margin, or loans from their brokers
With interest rates on those loans soaring
above 15 percent, many traders decided
to sell margined stock to dose out then
debts, thus contributing significantly to
selling pressure on the market.
In Providence, RL, Treasury Secretary
G. William Miller said Wednesday the
uncertainty in the stock market following
the Federal Reserve’s credit-tightening
measures was not surprising.
"I would think that in the face of the
actions that were taken, the markets will
be unsettled, will be unsure of them
selves,” Miller told reporters at a news
conference.
A
I )
...
leader's 42-car motorcade arrived at the
Cuban Mission to the United Nations
about 2 a.m. EDT.
Castro will stay at the newly acquired
mission less than a mile from U.N.
headquarters on Manhattan's East Side
during his two-day visit.
More demonstrations were expected.
Police said pro-Castro groups and anti-
Castro groups — including those from
the more than 90,000 Cuban-Americans
who live in New Jersey — would be
separated.
U.N. spokesman Rudolf Stajduhar said
Castro, the president of the Non-Aligned
Movement of 95 Third World Nations, on
Friday would stand on the same United
Nations podium he did in 1900 to address
the 152-nation assembly for about 75
minutes.
. Because of ''genuine threats” against
Castro and reports that teams of
assassins were en route from Florida to
New York, police set up a four-block,
barricaded "frozen-nue" around the
doing too little. Carter has overreacted.
McGovern told the annual dinner of the
New York Liberal Party that senators who
insist there can be no SALT II treaty until
Soviet troops leave Cuba are guilty of
advocating “utter nonsense."
Speaking at the same dinner. Sen.
Jacob Javits, R-N.Y., said he believes a
way can be found to convert what U .S. in-
telligence says is a Soviet combat brigade
into the training unit the Soviets insist it
is.
—!
i
No trial date has been set for two Deaf
Smith County Jail prisoners who tried to
overpower a deputy with screwdrivers on
Sept. 23.
Lyman Wayne Basset. 26. and Jose
Daniels. 23. were indicted last week by
the grand jury on charges on aggravated
assault and attempted escape in
connection with the incidem.
According to the sheriff's office.
Daniels tried to force deputy Bill
Henderson up against a cell occupied by
Basset. Both men were allegedly using
screwdrivers in the attack on Henderson,
who sustained cuts in the scuffle.
Deputy Dean Butcher said that four
work-release prisoners in the jail came to
the aid of Henderson and thwarted the
escape.
Henderson "put up a helluva fight"
against the two prisoners. Butcher said.
"I commend deputy Bill Henderson for
the courageous manner in which he broke
up the jail escape. Had he not resisted to
the point he did resist, they would have
gone on out of the jail prior to the work
releases knowing anything about it."
Butcher said.
Henderson was stabbed three times in
NEW YORK (AP) — With a tip ot his
hat and the familiar cigar in his mouth.
Cuban President Fidel Castro arrived in
New York early today and said: "I'm
happy to be in the U.S."
Castro was greeted by one of the
tightest security nets ever woven for a
dignitary visiting New York. He is here
for an address to the United Nations on
Friday.
The Cuban dictator, dressed in green
fatigues, tipped his hat as he descended
the stain of his Russian-made Ilyushin-
62 jet at Kennedy International Airport.
"I'm happy to be in the U.S.," the 53-
year-old leader was heard to say as he
was greeted by government and U.N.
officials. It is Castro's first trip to the
United States in 19 years.
The United States and Cuba do not
have diplomatic relations, and Castrq is
officially visiting the United Nations,
which is headquartered on international
soil.
An angry group of about 30 anti-Castro
demonstrators shouted "Murderers!
Murderers!" in Spanish as the Cuban
NEW YORK (AP) - The Federal
Reserve Board's new plans for damping
down on credit have touched off some of
the w ildest activity ever in the markets of
Wall Street.
The New York Stock Exchange had by
far the busiest day in its history Wed-
nesday. with 81.62 million shares chang-
ing hands, eclipsing the previous high of
66.37 million, set on Aug. 3 of last year.
The Dow Jones average of 30 industrial
stxks, off about 25 points at mid-
afternoon Wednesday, staged a late rally
to finish with an 8.27 decline at 849.32.
But that still left the widely recognized
average with a loss of more than 48 points
since the start of the week.
w
certainty, however, many Wall Streeters
were unshaken in their initial approval of
the Federal Reserve's decision last
weekend to use some powerful new
ammunition in its battle against inflation.
Many of them conceded the new steps
increased the possibility of at least a
moderate recession in the months ahead,
and that they raised the specter of some
tough going for such important industries
as housing construction.
But they argued that such short-term
pain could bring with it the longer-term
reward of progress against rapid in-
flation. which many economists and
President Carter regard as the No. 1
threat to the future progress of the U.S.
economy.
The market's declines this week,
however dramatic, come nowhere near
the proportions of a "crash" like the
devastating slide of 1929, when stock
prices lost nearly 50 percent of their value
over a few short weeks.
This week's drop, by contrast, has
represented a loss of less than 6 percent,
as measured by the Dow Jones Industrial
Average.
"There is no earthly reason for a stock-
market panic," said Heinz H. Biel, a
veteran market analyst with the
brokerage firm of Janney Montgomery
Scott Inc. "What the Fed is doing is a
h
"neither neccessary nor appropriate."
Church, the Idaho Democrat who
chairs the Senate Foreign Relations
Committee, planned to spell out his
proposal in a speech to the Senate today.
He has indicated he believes adoption
of his formula is essential if SALT II is to
be ratified.
Church made a public disclosure of the
presence of a Soviet combat brigade in
Cuba, saying at the time he believed the
Senate would not ratify SALT II as long as
it remained.
Vance and Defense Secretary Harold
Brown made a final plea for speedy
ratification of the treaty Wednesday
during a dosed door session which
brought the committee's long series of
hearings on the treaty to a virtual end.
Since last July 10. the panel has heard
from some 100 witnesses on the 2,000-
page treaty.
Brown told reporters after the hearing
the administration does not intend to buy
votes for the treaty by increasing defense
spending by 4 percent to 5 percent over
the inflation rate as some senators
demand.
But he said defense needs could cause
a boost in military spending beyond the 3
percent real increase President Carter
has promised.
Before a final vote on SXLT II. the
administration intends to send Congress
a preview of the 1981 defense budget and
highlights of defense spending plans
through fiscal 1985.
Meanwhile, a number of Republican
legislators were among those taking part
Wednesday evening in a nationally
televised reply to Carter's speech last
month on the Cuban situation.
One of them, Sen. Henry Bellmon, R-
Okla., said the Senate should delay any
decision on SALT II until March 1 and
turn instead to a wide ranging review of
American defense and foreign policies,
including the Cuban situation and
NEW YORK (AP) — Stock prices
continued to fall today as a fresh wave of
selling overcame an early rise in prices.
Volume was well off the record-setting
pace of Wednesday's session.
The Dow Jones industrial average,
which plummeted 48.29 points in the first
three days of this week, was off 4.18 to
845.14 at noon today.
Declining issues held a 5-4 lead over
advances on the New York Stock Ex-
change.
Worries about the effects of the
Federal Reserve's newly announced
credit-tightening actions sent stocks
, skidding in extremely high volume this
week. The Fed's moves sent the prime
i lnding rate up a full point to 14%
) percent qaTuesday.
— v The decline stalled late Wednesday
and stock prices began 'recovering as
investors moved to take advantage of the
depressed prices. A higher dollar and
plunge in gold prices helped the market
to an early increase today, but the decline
soon resumed.
AT&T led the most-active list, falling
7/8 to 52 3/8, with a 225,000-share block
changing hands at 52%.
The NYSE's composite common-stock
index was down .16 to 59.37 at noon. At
the American Stock Exchange, the mar-
ket value index was up .13 at 212.78.
Decontrol
By GLENN BITT
Associated Press Writer
WASHINGTON (AP) — Mortgage
rates could skyrocket to 14 percent by
early next year, but it won't matter for
people in nearly half the states because
home loans won't be available to them at
any price, housing officials say.
Moreover, the Federal Reserve
Board's fresh anti-inflation initiatives will
severely depress the housing construc-
tion industry, these experts say.
Housing starts will plummet as much
as 25 percent next year, warned Jay
Janis, chairman of the Federal Home
Loan Bank Board, which regulates the
nation's thrift institutions.
"While the (Federaf"ReseRt Boand’s)
tiqht-moneL approach might reduce
speculatiom in the commodities and alow
inflation in other sectors of the economy.
the policy is disastrous for potential home
buyers and small builders," Vondal S.
Gravlee, president of the National
Association of Home Builders, said
Wednesday.
Many Americans will be completely
shut out of the housing market beginning
in January, said economists for the thrift
institutions.
Twenty-four states will be hit hardest
because they have laws limiting mor-
tgage rates to about 12 percent or'less,
makingit unprofitable for the institutions
to lend because they must pay even
highe interest rates to borrow.
Thomas Parliament, an economist for
the U.S. League of Savings Associations,
pinpointed Arkansas. Georgia. Illinois.
Iowa. Kansas, Missouri, Nebraska, New
Jersey, New York and Texas as very
mortgage-dry “come the first part of the
year.”
Five percent and 10 percent down-
payments, he said, will become virtually
extinct. "Twenty percent downpayments
will have to become the rule.
Pb, ogr.
23038
very constructive move. If it's suc-
cessful, it will avoid a major depression in
the future."
Last weekend, the Fed, under
chairman Paul Volcker, said it would shift
the emphasis in its anti-inflation strategy
toward directly controlling the supply,
rather than the cost, of money. It in-
dicated it would let interest rates, within
broad limits, go wherever the market
took them.
That amounted to an abrupt change in
the rales of the game for many regular
participants in the markets.
For example, a number of analysts said
it prompted a sudden change of strategy
by investors who had been trading stocks
Bond prices likewise have been under
intense pressure since the start of the
week as they absorbed the shock of un-
precedented increases in interest rates.
Earlier this week, many of the nation's
banks raised their benchmark prime
lending rates a full percentage point, to
14% percent.
The dollar, which had been steady
Monday and Tuesday, meanwhile,
suffered a setback Wednesday in foreign
exchange.
Gold prices were also volatile, soaring
more than $28 an ounce to $419.50 in
early trading, but later backing off to
$408 in London.
Amid all the confusion and un-
it Fact Finder it
Q - How am non- American eitizens he
on voter-registratien lists? One was
called for Jury duty a sheet time nga. u
makes one wonder hew manyr illegal votes
are cast each election.
A-District Clerk Lola Fae Veazy
verified that there have been Mexico
citizens called for jury duty on occasions.
County Clerk B.F. Cain, whose office la
responsible for voter registration, said
that the application for registration states
that the applicant must be a citizen of the
United States and must be a legal
resident of the county. It is quite possibke
for an applicant to either lie about his
citizenship or not understand exactl.
“Moreover, banks won't let families
assume mortgages if their carrying costs
stretch excessively beyond 25 percent of
their income," said Parliament.
Gravlee said he foresees mortgage
rates reaching 13 percent very soon.
"The difference between an 11 percent
and 13 percent rate on a 30-year, $60,000
mortgage is $92 a month," he said.
The dramatic mortgage crunch is the
direct result of the Federal Reserve
Board increasing its bank lending rate
from 11 percent to 12 percent and
altering the way it controls the
availability of money and credit.
The changes led to immediate up-
surges in other short-term interest rates,
with many large banks increasing in-
terest charged their best customers —
the "prime rate" — to an unprecedented
14.5 percent.
By LAWRENCE L. KNUTSON
Associated Press Writer
WASHINGTON (AP) — Sen. Frank
Church is suggesting that the Senate
ratify the SALT II treaty but delay its
implementation until President Carter is
able to certify a Soviet combat presence
no longer exists in Cuba.
Secretary of State Cyrus Vance told
reporters in Church’s presence Wed-
nesday that he believes such action is
WASHINGTON (AP) — President
Carter's oil-decontrol policy, twice
repudiated by House Democrats, is
facing its most crucial test yet in
Congress.
The full House was to vote today on
whether to reverse the president and slap
price lids back on home heating oil, diesel
fuel and domestically produced crude oil.
The showdown was on proposed
amendments to a bill authorizing
Department of Energy spending for fiscal
1980, which began Oct. 1.
Organizers of the back-to-regulation
(See DECONTROL, Page 2)
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Newspaper.
Sims, Paul. The Hereford Brand (Hereford, Tex.), Vol. 78, No. 72, Ed. 1 Thursday, October 11, 1979, newspaper, October 11, 1979; Hereford, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1422010/m1/1/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Deaf Smith County Library.