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Show Serial,, Ordjr Oa UnlutitHlty of Utah lwrtn?nt Salt Lako City, Utah WESTERN AMtMuwi y 80112 V SALT LAKE CITY, VOLUME 15, NUMBER 128 TUESDAY, JULY 6. 1971 UTAH Ban On Banks' Campaign Loans Held Invalid Utah Attorney General Crackdown on Alleged Supreme -Court Decision Unscrupulous Business Practices The Consumer Protection Division of the Utah Attorney Generals office has instituted further crackdowns upon alleged unscrupulous business practices in the service station and auto repair areas. Attorney General Vernon B. Romney emphasized that only a fraction of these businesses prey upon unsuspecting motorists, particularly women drivers bearing out of state license plates. HBy and large, the majority of our businesses are very honest in the conduct of their business," said Mr. Romney. "However, it is the very few operators who perform unnecessary repairs or charge exorbitant prices that could give Utah a bad name and offset the thousands of dollars spent by the State to attract tourists. Mr. Romney cautioned Utah citizens to obtain several estimates on auto repairs, if possible, to protect themselves against possible overcharges or unneeded repairs. In a similar vein, Bernard J. Tanner, attorney for the Consumer Protection division, said that complaints from out of state motorists are reaching serious proportions. However, in one case, Mr. Tanner said that an oil company did apologize in writing and refunded the motorists expense following an alleged unnecessary alternator repair. Both Mr. Tanner and Mr. Romthat the Attorney ney Generals office would fully investigate and take appropriate action w'hen complaints are received regarding unscrupulous or fraudulent action, providing such complaints are warranted. Capsule Waterway Bed BOUNDARY LINE CONTESTED Rehearing DAVID W. SMITH, Plaintlf v. JOSEPH DeNIRO, et ah, Defendants & Appellants Trial Court: Plaintiff favored under deed dated in 1946. (Defend- ants claim under deed dated in Supreme Court: PHILADELPHIA (UPI) -Trustees of the Penn Central Railroad, which is in reorganization under the Bankruptcy Act, reported June 30 a net income loss of $126.1 million for the first five months of 1971, including a net income loss of $18.5 million for May. April, 1971, the trustees reported the railroad suffered a net In income loss of $15.1 million. The monthly statements were made in accordance with provisions of the U.S. District Court here, where reorganization of the nations largest railroad is being supervised. The figures, the trustees said, compared with a net income loss for the first five months in 1970 of $106.02 million and a net income loss for May, 1970, of $20.2 million. They noted that the inclusion of figures for 1970 did not reflect the endorsement of accounting practices prior to institution of the reorganization. The Penn Central, which was formed by a merger of the New York Central and Pennsylvania Railroads in 1968, filed under the Bankruptcy June 21, 1970. The railroad, as an affiliate of the Penn Central Company, a $6.4 billion congolomerate, said in that petition that it was virtually without cash. Judge John P. Fullam ordered the into reorganization railroad proceedings and later appointed four trustees to come up with a plan to reorganize the giant in hopes of attaining solvency. Act on 1922.) court in error on location of boundary. claims of ownership based upon possession are insufficient to support claim of either plaintiff or defendant. Remanded to District Court with directions to modify findings. Trial . . . Justice R. L. Tuckett wrote the decision. Chief Justice E R. Callister, Jr. and Justice Henriod concurred. Dissenting: Justice A. H. Ellett and J. Alan Crockett Plaintiff Counsel: Harry D. Pugsley, El Paso Bldg. Defendant Counsel; Richard C. Howe, 5055 South State See decision in detail page 4 Fiscal Year 71 Ending In Red By $20 Billion - ed fiscal year which produced the second largest budget deficit since World War II and the fifth largest in the nations history. Although the final figures will not be compiled for about a month, it already is certain that spending exceeded income by about $20 billion during the 12 months that began July 1, 1970. That means the government will spend beyond its means by almost as much as the $25.2 billion deficit recorded in 1968. Deficits, of course, are common. The books failed to balance in 10 of the last 11 years. The budget for the fiscal year that begins Thursday forecasts an $11.6 billion deficit, although many observers expect it to go higher. Ohio Seeking Recovery From Bankrupt Firm - (UPI) Some Ohios top attorneys are trying to recover $4 million in state funds loaned to Four Seasons Nursing OKLAHOMA CITY of Homes, Inc. The unsecured loan was issued in March 1970, three months before the d Oklahoma nursing home chain filed for reorganization under federal bankruptcy laws. Ohios position is that the loan should have priority over other debts and should be paid immediately out of the firm's current City-base- assets. Attorneys for Four Seasons contend that the Ohio loan should be treated like other claims and should be included in an overall repaymen - WASHINGTON R-Te- R-G- a., The commission would vestigate the role of the Supreme in- the two said. said it may be that the Courts appellate powers should be reduced. The Court is "deviating from deciding points of law and is making law through judicial legislation," they contended. Thompson said, "The Supreme Court goes unchallenged, yet is free to challenge both the legislative and executive branches. If that trend continues, he said, the court "must be challenged. . . otherwise, we will be in a judicial dictatorship. Collins and Thompson plan. Deciding the issue is U.S. District Judge Luther Bohanon, who has been working with the bankruptcy case for some time. The loan was arranged through the Ohio State treasurers office by Crofters, Inc., a Columbus loan firm. Ohio Ally. Gen. Paul W. Brown said earlier this year that Ohio ofwere ficials "intentionally deceived as to who would end up with part of the loan. Brown said $800,000 of the money was reloaned to a Beverly Hills, Calif., firm and another $160,000 was retained as a "finders fee by the company which arranged the loan. i i WHITE SULPHUR SPRINGS, W. Initial claims (ACCN) statistics developed under the new auto inMassachusetts surance plan are inconclusive in no-fau- prohibits the political expression of a national bank, but that it directly affects the olitical expressions of individuals who may wish to utilize their assets to secure credit on behalf of a particular candidate. "The court determines that a prohibition of fully secured loans made at normal bank rates in the ordinary course of business places an unreasonable restraint on the First Amendment rights of individuals." GLENN DAY IWASAKI and lt evaluating eventual frequency or severity of claims, it was agreed during a panel discussion at the Casualty Actuarial Society's annual meeting here. The statistics, made public recently by the state, showed a marked decline in the number of claims during the first three months lt after the plan went into effect in Massachusetts last January no-fau- 1. Panel members included Lee Alexander, actuary, Massachusetts Automobile Rating and Accident Prevention Bureau; Roy Anderson, vice president Allstate Insurance Company; Milton McDonald, chief actuary, Massachusetts Insurance Department, and Herbert Phillips, Jr., actuary and vice president, Union Employers-CommerciThe panel was Companies. moderated by John R. Be van, actuary, Liberty Mutual Insurance Co. al Among the possible reasons to why claims reported to date may understate the number of potential claims, the panelists said, are: Uncertainty about the constitutionality of the new law, which is currently before the state Supreme Court in a test case. It was suggested that some attorneys are delaying cases until the constitutionality question is settled. (On June 29, the Massachusetts Supreme Court upheld the lt law. Ed.) Policyholder reluctance to file claims against their own carriers because of apprehension about possible cancellations or increased no-fau- HANSEN Glenn K. Iwasaki K. Iwasaki is associated with the law firm of Day & Hansen. 716 Newhouse Bldg. Mr. Iwasaki was raised in the Salt Lake City area and attended schools here. He received his Bachelor of Science degree from the University of Utah, his J.D. in January and later passed the Utah State Bar examination. Iwasaki is married, residing with his wife Carol and two children. Scott 4 and Marnie 9 months at 659 E. Capitol Blvd. and the time when doctors and hospitals complete their billing. With all the attention auto insurance has received from the press in recent months, policyholders have become more conscious of the consequences of reporting unnecessary claims. Anderson, citing the lack of public understanding of benefits provided by the new law, said that "in Massachusetts, to a greater degree than in any other state, an injured person is most likely to seek the advice of a plaintiff's lawyer. Some persons with valid Personal Injury Protection claims have been advised by counsel against pursuing their claim pending the outcome of the court case, he speculated, and more seriously injured claimants are being advised they should wait until expenses exceed the $500 tort threshhold. He said he also felt that the Merit Rating Plan schedule to become effective in Massachusetts in 1972, is discouraging the filing of claims because of policyholder apprehension over possible increases rates. Phillips observed that the 15 per cent reduction in Massachusetts automobile rates under the new law "may be a liveable figure right now," but any other adjustments would be premature, based upon current statistics. in premiums. Although claims notices are filed, details are lacking because policyholders may be reluctant to depend upon pending the state Supreme Court ruling. The normal lag between the lime when expenses are incurred no-fau- lt WITH Glenn VA. Two (UPI) congressmen said June 29 that a Congressional commission should find out if the Supreme Court is overstepping its powers and heading for a judicial dictatorship. and Reps. James Collins, said Fletcher Thompson, they were particularly angered by court decisions in the Muhammed Ali draft case and the cases involving desegregation of schools. They sponsored a resolution in the House calling for a special commission to be set up and instructed to report in 18 months. Court, No-Fau- lt Data Disputed Supreme Court WASHINGTON (UPI) The government closed its books at midnight, June 30, on the red 1971 First 2 Congressmen Want Probe Of ink-stain- Penn Central Reports Income Loss Continues OHIO (UPI) -- A law that prohibits national federal banks from making loans to political candidates or organizations is unconstitutional, a U.S. District Court judge ruled June 30. Judge Joseph P. Kinneary made the ruling in dismissing charges against two banks which gave loans to help finance political campaigns in Ohio elections. The banks, First National bank of Cincinnati and First Knox National Bank of Mount Vernon, Ohio, were indicted for violating a federal law that prohibits banks from making a contribution in connection with an election. The Cincinnati bank was charged with making loans totalling $60,000 to groups sponsoring the unsuccessful 1969 U.S. Senate campaign of Gov. John J. Gilligan and also his campaign for the governorship last year. The Mount Vernon bank was charged with making a $2,000 loan to the Knox County Republican Finance Committee. Kinneary said the law under which the banks were indicted violated the 1st amendment of the Constitution. "The evil in (the law) is not that it COLUMBUS, NEW YORK (UPI) - Over 164,000 abortions will have been performed in New York City wh. n the first year (if liberalised abortion ends June M. according to a icport uj Ad Health Services city s ministration. rcn-u&c- |