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Show Magellan reaching Venus' orbit today Briefs Feds seeking restitution from Keating WASHINGTON (AP) Federal regulators want Charles H. Keating Jr. and five associates to pay $40.9 million to the defunct Lincoln Savings and Loan Association for losses it suffered from three sour business deals. But a spokesman for Keating and lawyers for his company accused the Office of Thrift Supervision of trying to harass the Phoenix businessman because regulators have failed to prove allegations raised in court cases. OTS launched administrative proceedings Thursday against Keating, the chairman of American Continental Corp., and five of the company's top officers. The regulators are seeking to recover money they say was improperly used to finance questionable business deals. The agency also seeks to remove Keating and the five executives S&L First-quart- er - from the company and bar them forever from the thrift industry. American Continental, which owned Lincoln Savings and Loan, filed for bankruptcy protection a day before the Irvine, Calif., thrift was seized by federal regulators in April, 1989. Lincoln, which Keating's company acquired in 1984, invested heavily in the junk bond market. A federal grand jury in Los Angeles is investigating possible criminal wrongdoing in the S&L's $2 billion failure. Keating has repeatedly claimed he is broke. But OTS Director Timothy Ryan said regulators "just do not believe him right now" and want a full accounting of Keating's personal assets in five days. bailout costs go up (AP) Bankrupt savings and loans under government management effectively added $1.35 billion to the cost of the thrift bailout in the first three months of the year. ' Operating losses at the 350 failed, but still open, institutions rose 35 percent from the $1 billion in operating red ink a year earlier, when the S&Ls were still managed privately, the Resolution Trust Corp. scid Thursday. Report: Reagan aids obstructed study WASHINGTON (AP) Congressional investigators say a Reagan White House plan to deny federal liability in toxic exposure cases led to the cancellation of a major study of Agent Orange's effects on Vietnam veterans. A House panel concluded in a report issued Thursday that the White House "controlled and obstructed" the study Congress ordered from the Centers for Disease Control. The report by the House Government Operations Committee sup - . ported arguments by the American Legion and the Vietnam Veterans of America. They filed a lawsuit last week seeking to have the CDC resume its study of the health effects of Agent Orange exposure during the Vietnam war. "While the Reagan administration defended the Vietnam conflict as an honorable war, it worked behind the scenes to deny benefits to the very people who sacrificed their health for their country," said Rep. chairman of the Ted Weiss, subcommittee that wrote the report. Barry's jury in 8th day of deliberations - (AP) Jury de- unable to return, Jackson could liberations in Marion Barry's co- order deliberations to continue with caine and perjury trial resumed for an jury. A jury once was rethe eighth day today as a juror who had been hospitalized for stress garded to be a constitutional rereturned to court. quirement in federal criminal d U.S. District Judge Thomas trials, but the Supreme Court has Jackson said Thursday that more recently made clear that the not require 12 juror Deborah Noel, a diabetic, was Constitution does conviction. for "overand jurors "deeply depressed" The Supreme Court amended fedwrought" but should be all right criminal rules in 1983 to give eral rest. after a night's The seventh day of deliberations judges the discretion of excusing a was cut short around noon Thursjuror for just cause. day because Noel said she didn't In a 1984 drug case in New York, feel well. a federal judge allowed deliberaNoel, a Howard University Hospitions to continue with 11 jurors tal clerk, was examined by her after excusing the 12th juror who physician, who "could find nothing wanted to be absent to observe a physically wrong with her," the religious holiday. judge said. But she was admitted to The judge rejected the defendProvidence Hospital for an overadjournants' request for a 4'i-da- y in listed good night stay and was ment until all 12 jurors could recondition. turn. If Noel for some reason was WASHINGTON - Pen-fiel- PASADENA, Earth. As of 9 p.m. Thursday, the craft was traveling at 10,651 mph. It was 147,587 miles from Venus and 144 million miles from Earth. The $413 million craft was designed to use radar to penetrate Venus' thick clouds and make maps and pictures of the planet's deformed, volcanic landscape with unprecedented detail. NASA plans to release the first pictures in September, but may do a Magellan project official at NASA's Jet Propulsion Laboratory. The spaceship was scheduled to fire its braking rocket and drop into orbit around Venus at 9:32 a.m. today after a roundabout, betrip from Earth that 15 months ago. gan this month if images made during tests produce any interesting discoveries. from the shuttle Atlantis in May was the first U.S. planetary so 1989, - by Delta Air Lines Inc. President Hollis L. Harris. Lorenzo will receive nearly $30 million in severance, retain a small interest in stock options and keep a seat on the board of directors. His compensation reflects a fraction of the value the airline operation had in better times. "It's been perfectly obvious to me that I personally have become a lightning rod for many of the attacks that the company has taken in the process of making the changes that have been required," Lorenzo said. He spoke to reporters at a New York news briefing, flanked by Hollis and SAS Chairman Jan Carlzon. All three called the arrangement a strategic move that would strengthen Continental into a global airline for the 1990s. Airline NEW YORK (AP) boss Frank Lorenzo said Thurs-dayhe- 's quitting the flying emin the 1980s, hurt by he built pire a barrage of bad publicity and labor bitterness about his tough-gu- y management style. The entrepreneur who came to symbolize a tumultuous decade of airline deregulation is selling most of his stake in Continental Airlines Holdings Inc. to Scandinavian Airlines System. The leading foreign carrier has held a small stake in Houston-base- d Continental for two years. Houston-base- d Continental Holdings, formerly known as Texas Air Corp., once commanded 20 percent of the domestic airline market through its ownership of Continental and Eastern airlines. But its business has been severely crimped by heavy debt and a debilitating strike at Eastern that's now 17 months old. Last year the parent company lost $885.6 million, an industry record. Lorenzo, 50, also is resigning as chairman and chief executive of Continental, to be succeeded SAS, which is spending $50 million in the deal, will roughly double its stake to 18.4 percent of the company's voting sto6k. Carlzon said SAS had no interest in gaining control of the airline. Federal law limits foreign ownership to 25 percent. "Magellan is the beginning of a new era of planetary exploration," Huntress said. "We're looking forward to the drama." The Voyager probes explored Jupiter, Saturn, Uranus and Neptune between 1979 and last year, but they were launched in 1977. Galileo, launched in October, is headed toward a 1995 rendezvous with Jupiter. BEVERLY HILLS, Calif. (AP) -The nation's highest court should not decide on abortion, U.S. Supreme Court Justice Antonin Scalia says. "The Constitution says nothing about it either way," Scalia said Thursday. "That's how I read the document. It's an issue the states must decide for themselves." His remarks came in response to written questions submitted after a speech before the Los Angeles World Affairs Council. About 1.100 people attended. Scalia did not specifically discuss abortion in his talk, focusing instead on his belief that judges should not engage in public debate. 1 Frank Lorenzo "We think Continental has an interesting future," Carlzon said. Wall Street reacted positively to the announcement. Continental's stock, which traded as high as $23.75 a share over the past year but recently traded for $4 to $5, rose $1.75 on the American Stock Exchange in active trading to $6.75. Skinner protests higher air fares - WASHINGTON (AP) Transportation Secretary Samuel Skinner is calling in airline executives to discuss the impact of sharp rises in jet fuel prices that led nearly every major carrier to announce fare increases. Some increases went into effect today, but passengers on most airlines have until next Wednesday to book flights in advance at current fares. Skinner wrote several airline presidents on Thursday, asking them to make appointments with him next Wednesday, Thursday or Friday to discuss how higher jet fuel prices following the Iraqi invasion of Kuwait are affecting airline finances and the public. Delta, United and USAir all announced 5.3 percent fare increases Other airlines that have an- nounced increases include America West, Midway, Pan Am, Southwest, Trans World and the Trump Shuttle. Prices of jet fuel shot up from a level of 70 to 75 cents a gallon before the invasion to 80 to 90 cents this week, airline officials said. The government has no power to regulate fuel prices or airline fares, but Skinner earlier asked all transportation companies to show re straint in raising rates in response to increasing fuel costs. "I am concerned about the effect of the rise in fuel costs, both on the financial position of the industry and on the traveling public," Skinletter ner said in a to several airline presidents. He asked the officials to brief him on the situation. "Airline ticket prices are going up, and we want our passengers to know why. Jet fuel prices have gone through the roof," Robert J. Aaronson, president of the industry's Air Transport Association, said at a news conference Thursday. Aaronson said he expects all airlines to honor advance tickets sold before the price increases take effect. The defense juvenile does not automatically is involunin the Central Park jogger case mean the statement said. the judge tary," the - was dealt a setback when judge Peter Rivera, Raytold the jury that the law did not had mond Santana's argued lawyer, " necessarily require that the young state- defendants' parents be present dur- - that Santana's incriminating his because no were ments good - ing questioning. grandmother, who spoke little En: ' Justice Thomas in- Galligan's glish, was the only adult with him - structions came in response to a questioning. from the during : request for clarification "The attack on the confession of deliberafirst its day jury during was our central issue. The judge's tions Thursday. Jurors resumed de- - instructions hurt my case," Rivera liberations in the rape and attempt-- ; said Thursday. ed murder case shortly after 10 Santana, Yusef Salaam, 16, and : a.m. today. Antron McCray, 16, are charged : 1 "The fact that a parent was not with attacking a jogger in Central : present (luring the questioning of a Park in April 1989. Still, his speech was interrupted activists. by two abortion-right- s "You have blood on your hands," shouted one of the demonstrators. "You're killing women. Women will die because of you." Both were quickly escorted out of the ballroom by security personnel. Scalia also avoided discussion of David Souter's nomination to the high court. And he declined to answer a question about what tlie Senate should be allowed to ask a Supreme Court nominee during conj firmation hearings. "The Senate and I have an understanding," Scalia said. "They don't kibitz about how I do my business and I don't kibitz about how they do theirs." The Scalia, appointed to the court in 1986 by then President Reagan, has tried to pull the court further to the right and has been outspoken in criticizing conservative colleagues who prefer incremental change. Though he has a libertarian streak and strict adherence to constitutional principles that occasionally produce a surprise, Scalia is considered one of four solid votes poised to overturn the Supreme Court's 1973 Roe vs. Wade decision legalized a woman's right to an abortion. BflflW0?8 nCfllSrll P&m Mattress AMY SI2I A month FREE Z INTEREST 5 3 NEW YORK (AP) II 312 coil, 10 year warranty (hi : I crtlrl in - sets only D 1 SMITH CI II I .......... S3 CI7ECI M Full line correction WordErase Auto Center Limited Time Offer NOW ONLY 64 0511 ,m Xlovcv 324 West Center Provo m 1 . We Service What we sell! Bit BOOK CASE BUNK BUNK R; HEARTBED I I $39.95 extra $7Q95J 5 Twin Mattress Polytfcc 3f 5 9S i . w.i r - . l t Frv U Ll Mill liMrrsoi 8H3 an&iMlrf:' KJmf kz4 r I w Hi fG if" $14995 lipi 3 $39.95 I' Your Smith Corona Headquarters! I i - DAYBED Auto Return Bold Print 1 . Over 12 styles on our floor at low prices! MODEL 1700 TYPEWRITER O.A.C. kvr TWIN & KKHH .... T" (isii each piece i 1978, when NASA sent the Pioneer 12 orbiter and the Pioneer 13 probes to Venus. Scalia: States should decide abortion issue vf Thursday that are to take effect in five days. Several other airlines announced increases earlier. Northwest dropped a planned fuel surcharge, announcing a 10 percent fare increase instead. American scaled back its increase from 10 percent to 5.3 percent. launched since spacecraft Magellan has raised NASA's hopes after its recent woes, including the temporary grounding of the shuttle fleet because of hydrogen leaks and a defective mirror that crippled the $1.5 billion Hubble Space Telescope. "The major pressure we feel is the pressure to succeed," Wesley T. Huntress Jr., NASA director of solar system exploration, said Thursday. "I'd prefer not to speculate on what failure might mean." The Magellan, deployed Lorenzo quitting Continental Defense suffers setback in jogger trial : Confirmation wasn't expected unlater because til about a half-hothe rocket ignition was to happen when the spacecraft was behind Venus, out of radio contact with The Calif. (AP) U.S. plafirst the orbiter, Magellan netary spacecraft launched since 1978, zoomed toward a rendezvous with Venus today on a mission to make the most detailed pictures yet of its rugged surface. "I'm excited, I'm exuberant, and I'm so delighted I can hardly control my emotions," said Ed Sherry, increase from the first quarter of 1989 does not necessarily mean the insolvent thrifts are being managed poorly by the government. "It may indicate the institutions are worse run or it may just indicate they've had another year to deteriorate. ... Also, interest rates have shifted," making it more difficult to earn profits, said Martin Regalia, an economist with the National Council of Savings Institutions. The figures, however, underscore However, the operating losses the need to close the thrifts quickly, were down 16 percent from $1.61 even when it must keep and warebillion in the last three months of house the S&Ls' inherited real es1989, the bailout agency said. tate, sour loans and other assets, ' Analysts said the operating loss Regalia said. WASHINGTON a; National Friday, August 10, 1990 The Daily Herald, Provo. Utah I iI I I 1&PI 'T,i W U I .Jlw II r rtwp 1 II . T"l Rrfspl ...... u as II a "UN V I u 15SP kMs 1 ! Z49J I |