Albuquerque Journal from Albuquerque, New Mexico • Page 6

ALBUQUERQUE JOURNAL Tuesday, September 23, 1975 Court Told Mrs. Morgan Given Stock By CAROL COHEA The former corporate attorney for the E.M. Riebold related firms and one-time officer in several of the companies testified Monday the wife of a First National Bank loan officer 1 received stock on two occasions in Riebold firms. Harold Morgan, 58, a former co-defendant in the case, testified for the government in the fraud trial of Riebold and Donald T. Morgan, a former senior loan officer at FNB.

THE TWO ARE charged in an alleged conspiracy to allegedly fraudulently, obtain $5.5 million in funds for various enterprises controlled by them including American Fuels Aqua Pura Inc. and Garfield Mines Ltd. Harold Morgan pleaded guilty in June 1 to charges of making false and misleading statements in the sale of securities in connection with a promissory note for American Fuels Corps. According to the information Harold Morgan and Riebold allegedly made misleading representations about the ownership of the coal mine, known as the Rienau Mine in Rio Blanco County, and the financial condition and prospects of American Fuels Corp. MONDAY Harold Morgan testified that in a special board meeting of American Fuels on 1 March 27, 1973 it was determined that 240,000 shares of American Fuels stock were to be issued in the name of Betty Morgan, wife of co-defendant Donald Morgan, with 240,000 shares to go to E.J.

Hammon and 100,000 shares to himself. Morgan said the stock was prepared, signed and issued but later canceled and other stock issued. Morgan said that again on April 13, 1973 369,375 shares in American Fuels stock was issued to Mrs. Morgan. That stock was also later canceled and new stock issued.

THE SAME amount of stock was also issued April 13, 1973 to Hammon and 216,250 shares to Riebold. During the morning, Morgan testified that from what he could determine Riebold's firms operated on bank loans and funds Riebold put in personally. "But I don't know source of the funds," he said. MORGAN ALSO testified about alleged misrepresentations Riebold made about mining properties. One incident involved lead and zinc mining properties termed the Klondyke operations in the Aravaipa Mining District near Safford in Graham County, Ariz.

Morgan testified that a mill was on the property but not in operation. In addito, iona man named Eckhart Koppen of Kop-Ran Development Corp. was employed to do rehabilitation on the mine property. Morgan said that Koppen, who began work in May 1973 quit in October 1973 after Riebold and Garfield Mines failed to pay him. MORGAN ALSO maintained there were $100,000 in liens on the property and $40,000 in taxes due.

He said the mill on the property ended up being sold at public auction by the attorney for the lienholders as a result of a foreclosure judgment. "In November 1973 a mill was acquired from Victor Russell for $30,000 down and the balance of $20,000 to be paid in January. That mill was sold at public auction and was never even moved from California," Morgan said. Judge Kilbourne Dies; Magistrate Services will be held Wednesday for H. Wells Kilbourne, Bernalillo County magistrate since 1968 and Albuquerque resident for 25 years, who died at his home Sunday after a long illness.

Kilbourne, 71, served on the magistrate bench since its inception in 1968. A lawyer for 41 years, Kilbourne practiced in Pittsfield, Mass. and Anthony, until he moved to Albuquerque in 1950. He practiced law here from 1950 until he went on the magistrate's bench. He earned his Ph.

D. from Yale and his law degree from Boston University. A native of New Britain, Kilbourne served in the Navy during World War II and was legal assistance officer at Midway Island and in the Philippines at the time. He was a member of the American Judicature Society, Sons of American Revolution, Society of Mayflower Descendants and the American Bar Assn. He was a member of the Albuquerque Fourth Ward, Church of Jesus Christ of LatterSaints.

Survivors include his wid- Since '68 H. Wells Kilbourne ow, Stella V. Kilbourne of the family home; three daughters, Becky Ann, Ginger Marie and Cindy Rae, all of Albuquerque, and a sister, Mrs. Cordilla Johnson of Kensington, Conn. Services will be held at 10:30 a.m.

Wednesday at French Mortuary with Bishop George R. Gardner officiating. Burial will be in the Santa Fe National Cemetery at 1 p.m. Malpractice Proposal Revisions Go to Panel By STEVE PENROSE Revisions, including removal of limitations on periodic payments for specific types of damages, to proposed malpractice legislation were presented to the Interim Health and Aging Committee Monday by officials of the New Mexico Medical Society. Also at the committee's meeting at the Convention Center, representatives of Traveler's Insurance which recently said they will stop writing malpractice insurance in the state on March 1, 1976, said the firm might consider remaining in the state if a joint underwriters' association were established.

IN HIS presentation on the current revisions to group's proposed malpractice legislation, Dr. Robert Zone of the state society, said he did not want to detail all the changes made or being considered because meetings between society representatives and a committee of the New Mexico Bar Assn. are continuing in an effort to arrive at a final proposal. "Each time we meet with them (the bar association committee), we come up with further changes," final he draft said, adding legislation would probably be completed in October. State Rep.

Lenton Malry Boston Teachers Defy Court Order BOSTON (UPI) Ninety cent of Boston's public school teachers ignored a court order and went on strike Monday, paralyzing the nation's oldest school system and a federally ordered desegregation plan. The Boston Teachers Union, by effectively shutting down many schools, accomplished in one morning what antibusing forces had failed to do in years of demonstrations against court-ordered desegration. ATTENDANCE fell to 17.7 per cent, with only 15,346 students out of a projected enrollment of 86,456 in the city's 162 schools in class. It was the lowest recorded since busing was ordered into effect in September, 1974. U.S.

District Judge W. Arthur Garrity, who ordered the controversial busing plan, told both sides to resume serious negotiations. He said they should spend at least four hours Monday and 12 hours today at the bargining table. Meanwhile, the school department said it would continue to keep the schools open today using substitute teachers, administrators and aides to staff classrooms. Parents were urged to send their children to school.

MONDAY NIGHT a group of about 300 black teachers and aides voted to return to work, saying they agreed with the reasons for the strike, but didn't want to further jeopardize the education of black children. A spokesman for the group, the Black Educators Alliance, said there about 500 black teachers and aides in the public school system. Union officials have been ordered into Suffolk County Superior Court by Judge Samuel Adams this morning to say why a contempt citation requested by the Massachusetts Labor Relations Commission should not be ordered. "We all do have to obey the law sooner or later," said Associate School Supt. Charles Leftwich.

"In those places where students did show up we did offer worthwhile educational programs," he said. While the total damage award could not exceed $500,000, he said the current draft retains a provision "to have unlimited health care these patients exclusive of the $500,000 maximum." AS IN THE previous draft, he said the first $100,000 of the damages award would be paid by the defendant provider with the remainder coming from a Patient Compensation Fund to be created through a surface on provider malpractice insurance fees. chairman of the committee, then asked that the society bring its final package to his group at its Novemember meeting. ONE OF THE changes in the society's proposed legislation was removal of restrictions on payments for certain types of damages such as a maximum of $2000 a month and a minimum of $500 monthly for adjudged workloss as suggested in the society's first draft. Zone said a provision had been added that damages prior to the court's judgment of liability would be paid in a lump sum while future damages would be paid on a monthly basis as determined by the court.

Also, he said, the society's latest draft allows for pain and suffering as the basis for an award, a provision that had been excluded in the initial proposal. BECAUSE THE inclusion of pain and suffering will "cost more," he said a provision that the defendant would pay the patient's legal expenses had been dropped. While specific elements and amounts of damages have been eliminated from the proposal at this point, Zone said the current proposal "still retains the $500,000 ceiling on overall judgments." EIA Files Suit Against Kennecott By PHIL NIKLAUS The New Mexico Environmental Improvement Agency (EIA) filed suit Monday against Kennecott Copper Corp. to force compliance with state particulate emission regulations at the firm's smelter at Hurley. The legal action came after a move by Kennecott to weaken the regulations was rejected by a 3-2 vote of the state Environmental Improvement Board (EIB) on Sept.

12. ALTHOUGH THE particulate regulations took effect in April 1974, Kennecott has been allowed to continue operating in violation of the pollution control requirements under a variance or time extension until October 1978. Under the conditions of that variance, however, the firm was to submit a "schedule of compliance" or plan for meeting the regulations by last April. Rather than filing that plan, despite receiving three time extensions to do Living Room Furnish your 4 Family Room or office in GENUINE LEATHER for only $829 Brazil Contempo Wyoming Candelaria HSS Asking Increase In Fund By WAYNE S. SCOTT of the Journal's Santa Fe Bureau SANTA FE The Health and Social Services Agency is asking a 21.4 per cent increase in its state General Fund appropriation for the fiscal year starting July 1.

The budget request, which has been approved by the HSSD Board, asks a general fund appropriation of $47.6 million, compared to $39.3 million appropriated for this fiscal year. A portion of the increase is due to the fact the department budgeted $3.1 million of cash surplus for spending this year. It estimates it will have no surplus by July 1 to carry over into the next fiscal year. THE TOTAL budget request is for $136.8 million, or 10.2 per cent above this fiscal year. In addition to the general fund appropriation, revenues would be $86.6 million of federal monies and $2.6 million from "other sources" mostly local contributions to social services projects.

Most of these are operated, under contract, by local organizations which put up 25 per cent of the total cost. The total budget request calls for $131.6 million for the "base" budget essentially to continue present programs. Another $5.2 mil- Election Won By Budagher Journal Special BERNALILLO Sandoval County Sheriff Robert J. Budagher won a seat on the Bernalillo School Board Wednesday in a six-man raceto fill the unexpired term of the late Tom 0. Montoya.

Budagher polled 521 votes. A total of 1303 votes were cast in the election. Other candidates and their vote totals were R. James Chavez, 422; Benny Star, 193; Fred Sanchez, 71, Leo M. Lucero, 57, and James F.

Rhodes, The vacancy on the board was created by last June when Montoya died after a stroke. Bernalillo School Superintendent Pete Santistevan said the school board will hold a special meeting Wednesday to canvass the vote. To Train Volunteers The Suicide Prevention and Crisis Center of Albuquerque will hold an orientation night for persons interested in doing service by telephone in crisis situations, on Thursday at 7:30 pm. The Center, a United Way funded service, will hold classes for new volunteers once a week for 5 weeks and volunteers can enroll by calling 265-7557. so, Kennecott asked the board to re- unreasonable and impractical and we open hearings on the regulations, say- are hoping there will be an open public ing there is no possibility of compli- hearing to establish whether that's ance short of building a new smelter.

so," said Kennecott spokesman Pat Visick. That request was denied on Sept. 12, He said Kennecott had not received resulting in the initiation of legal ac- any official papers concerning the suit tion to force compliance. and would withhold comment until they had been received. THE SUIT, filed in District Court in Silver City Monday, asks for the Cubia Clayton, who heads the EIA's issuance of one of two orders: air quality division which drafted the particulate regulations later adopted -The court order Kennecott to file by the board, said Monday he is very the schedule of compliance, as re- concerned over reports from Kennequired by the variance agreement; or cott that the smelter may close unless the regulations are revised.

-The court order Kennecott to comply with the regulation immediate- "UNLESS THEY ly or pay a maiimum fine of $1000 a establish (Kennecott) can day. regulations they want to opThe second alternative is based erate under, they're not going to operthe on ate at all that's unfortunate," he did not said. a "Closure is the option they are legal view that because Kennecott file the schedule of complithe variance until October 1978 considering nor neither the board is ance, voided the agency has considered closing the and therefore the firm is now smelter." in violation of state law. Dr. John Bartlit, chairman of the Meanwhile, Kennecott has again New Mexico Citizens for Clean Air and requested that the hearings on the par- Water, also denied his group is interticulate regulations be reopened.

That ested in shutting down the smelter. motion, filed with the EIB last Friday, automatically places the request on "Kennecott clearly would rather the board's Oct. 10 meeting agenda. manufacture artificial confrontations over shutdowns than devote attention "WE CONSIDER the regulation to be to pollution solutions," he said. WANTED DIAMONDS FINE JEWELRY PAYING HIGHEST PRICES FREE ESTIMATES NO OBLIGATION TO BUY LET YOUR MONEY Why WORK FOR YOU! A TIFFANY SONS WE ALSO pay insurance on jewelry you seldom SUITE 357-W BUY GOLD use, or leave it laying in a Safety Deposit 6400 UPTOWN BLVD.

(City Center) COINS box? Albuquerque New Mexico Sterling SELL NOW! Silver PH 299-4441 lion is asked for 47 new or increased amounts for an "expansion" request. Largest increase in the total budget request, including the "expansion" budget, is for the welfare agency. Its request is for million more. Largest percentage increase would be for administration, 25.7 per cent more. THE WELFARE agency handles welfare payments to families with dependent children and Medicaid, which furnishes medical services for the indigent.

Welfare payments to families with dependent children would increase from $31.5 million to $33.7 million under the proposal, an increase of 7.2 per cent. The base budget estimates an additional $1.4 million to continue payments at present levels. The expansion budget calls for another $966,648 to increase welfare payments from the present 86 per cent of "need" to 8 per cent and remove the present ceiling of $300 a family. Payments for medical services to indigents would increase from $38.6 million to $43 million under the budget, an increase of 11.6 per cent. BUDGET OF the social services agency would increase from $17.4 million to $18.5 million, an increase of 6.4 per cent.

This increase is due to larger administrative costs. The items of contract services, county administration and county workers would rise to $4.8 million, an increase of 58.6 per The items of direct day care provided by HSSD itself, purchase of day care and payment for services by local organizations would dropto $8.6 million, a decrease of 11.3 per cent. The state health agency would be budgeted $10.4 million, or $130,513 less than this year. But this expects to lose the $927,463 of federal money it had this year for the supplemental food program for pregnant women, infants and children. Congress has failed to appropriate money to continue the program, so it will be dropped.

The Environmental Improvement Agency would be budgeted $5.3 million, up 18.4 per cent from this year. The scientific laboratory would be budgeted for $413,754, up from $355,500. The administrative division would spend $5.8 million, up from $4.6 million. TOILET LEAKING? THE ORIGINAL ONE-PIECE FLAPPER TANK BALL $1.59 Fits most conventional flush valves. Perfect seal ends drip-drip of water.

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