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Show GovernorThreatens to Call Legislative Session SALT LAKE CITY(UPI) — Gov ticipated revenue surplus this fiscal Scott Matheson today said he will year of more than $17 million set a date for a special session of the Utah Legislature within two weeks unless the Republican leadership The surplus accrues from increasedsales tax collections higher promises to restore about $12 mil- lion to the Medicaid dudgetin a supplemental appropriation next January returns onslate investmentsandin creased income resulting from deregulation of oil and gas Matheson said “We can't afford to wait on the Medicaid problem and another ference. Both of those must bea this month and I will set a session this month if the Republican-controlled Legislature cannot come up with a caucus posi tion supporting restoration of those funds,” he stated Matheson planned to meet with The governorsaid thestate can afford to restore funds cut by lawmakers during the 1981 general ses- emergencyfacing the state — cor- rections the governor said at his the surplus to bolster the Medicaid sion because it will enjoy an an- monthly KUED-TV and corrections budgets news con- Republican leaders later today to explain his proposal for using part of ns could be adequate ‘or about $6 million in al appropriations Ma said and another $8 million surplus could be placed tingency fund for emergency use On other subjects. the governor said that within a week heplans to namea director for the new Depart ment of Adi rative Services ‘ormer Utah Social Services Direc tor Dr. Anthony Mitchell had been inated for the past but the Utah refused to confirm the ap pointment Mitchell, however, has been acting Administrative Services And Matheson said he hopes the Nominating Committee for the Ut Judicial e death of Chief Justice director since July 1 Richard J. Maughan would include The governor said no selection for the high-ranking position has yet three nominees close ing his support would be “someone who can write and make decisions promptly been made but is, at least one woman onits list of “very very Hesaid State budget direc: tor Jed Keeis one of those under consideration. Matheson said theperson receiv Local ‘Secretary’ Explains 512% Car Orders Plan By JOSEPHINE ZIMMERMAN Herald Staff Writer “I'm not promising to deliver any cars to anybody. I'm just runninga secretarial service,”” Larry Swensen declared today when questioned about a business he loans “They are supposed to take the 52 percent I contribute and investit. Theywill opened Tuesday in Provo, offering a car hold thetitle for three years, and will pay ordering service at 542 percentinterest The Provo Better Business Bureau questioned the business and said claims that financing for the operation is furnished by Bank of America and Citycorp Bank arefalse. Betty Engemann,director of the Better Business Bureau, said she talked with Dick Perry, vice president in charge of car loans at the world heaaquarters of Bank of America in San Francisco. “He knew nothing of the operation and said Bank of Americais not financing any such business,” she said. Judy Wright, Springville, who checked with an “independent agent’’ associated with the same financing operation, said she wastold she had to pay 5¥2percentinterest on a car order, and had to have that money invested in a bank. off the car for me with the money they make from investing in commodities. In the end, I am supposed to havea car for an investment of only 5'% percentofthelist price,” she said. “All I am is a secretary,’’ Swensen said this morning,’ I work for Dataforms. whichis a trust. I charge the people onehalfof one percentforfilling out the forms because I think my time is worth something.” He reported that he had signed up “probably 1,000 people,’’ in Tuesday’s operation. People reportedly formed line at the doorof Dataformsoffice, 317 N. 200 est Asked whohe was workingforin preparing the forms, Swensen said ‘“‘Dataforms, it's a trust.” Asked whowasin chargeofthe trust, he She said she was told the Bank of America had a billion dollars in extra money because people are not taking answered, “I am. | set up the trust yester dayto protect myself. I'm the president Responding to an inquiry about who he sends the forms to, he answered “That's what I'm going to find out today. I just opened up the business doing secretarial work; I should haveall the information today.” “How did you find out about this operation?” an interviewer asked. “The same way you did, by word of mouth,’ he answered. “You opened a business and you don't even kro.v who you are working for?’ asked <n incred'ious spectator. “T have uviiung more to say aboutthat,” Swensen answered He told the questioners that there is “absolutely zero guarantee. Wetell everybody that.” Hesaid he had no contracts to show. “All I haveis forms whichI'vefilled out for people.” He said he ran out of forms yesterday. Asked whohis contact wasin California, where he reportedly was sending the forms. he answered I'mnotat liberty to say Swensen says he is willing to place his own order for a car ‘I have my542 percent in the bank.” Hedeclined to reveal which bank held his money ‘If people want to call us, we'll make appointments. We must have appointments,”’ he commented. A firm in Springville reportedlyalso is operating as an independentcontractorin the same “secretarial service” for car orders. When The Daily Herald representatives arrived at Swensen's business, several people were standing outside waiting for the office to open, and others were seated in cars in the parking lot Provo City officials are investigating Swensen’s operation. since Detective Keith Miner said Swensen doesnot have a businesslicense. “I don't need a business license,” Swensen declared Federal Forecast Sees Inflation Dip, Unemployment Rise The: 108TH YEAR,NO. 301 PROVO, UTAH, WEDNESDAY, JULY 15, 1981 $5.50 MONTH—PRICE 25 CENTS CUP FundingDissatisties Marriott By LEE RODERICK Herald Washington Bureau WASHINGTON — Although the House Appropriations Committee voted a whopping $77.2 million for the Central Utah Project Tuesday — the approximate amount sought by Utah water officials — Rep. Dan Marriott says he is ‘definitely not satisfied.” Marriott's reasoning, accordingto an aide,is that the mammoth reclamation project is so many years behind schedule that even this money isn’t enoughto close the gap within a reasonable period oftime. Marriott also cited continued high inflation as a reason for needing morefunds. The amount approved by the committee Tuesday for the 1982 fiscal year, which begins Oct. 1, is slightly more than CUP’sallocationof $73.2 million for the current fiscal year. The $77.2 million for 1982 includes $66.7 million for the Bonneville Unit, $8.8 million for the Jensen Unit, $500,000 for the Uintah Unit, and $1.2 for the Upalco Unit. In comparison, the units received these allocations for the current fiscal year: Bonneville, $66.3 Agents Arrest Codes Expert In Spy Case million; Jensen, $5 million; Uintah, $500,000; and Upalco,$1.4 million. Lynn Ludlow, general manager of the Central Utah Water ConservancyDistrict, said the new fiscal budgetis less than the $88 million proposed MyFormerPresident Jimmy Carterbeforeheleft office. Hesaid the biggest increase in any segment of the CUP will be the Bonneville Unit which budget was increased by $400,000 for 1982 over the 1981 total of $66.7 million. Ludlow said the House of Representatives has already approved the measure, but the CUP budget still faces approval by the full Senate. “If approved by the Senate, the moneywill allow continued construction on the water project within the abilities of the Bureau of Reclamationforfiscal year 1982.”" The only major cut in the new budget is for the Jensen Unit which saw $3 million being slashed from its appropriation. “Mr. Marriott wants to see the CUP completed as soon as possible, and undercurrent projections RE ST SAN JOSE,Calif. (UPI) — A lone pesticide-laden helicopter landing at a secret base every 45 minutes to re-top its tanks with malathion, struggled to get aheadofthe fast-breeding Mediterraneanfruit fly but covered less than half the 15 square miles targeted for today The flight. which had covered only a former Armycryptographer. was arrested by federal agents today on charges of agreeing to receive $131,000 in exchangefor passing classified information to the Soviet Union. The four-count indictment charged Helmich provided classified, secret and top secret information vital to the national defense to Soviet agents from January, 1963. to August, 1980. The indictment charged that as part of the conspiracy, Helmich would receive approximately $131.000 and future payments and ‘other things of value’ for delivering documents relating to the national defense. U.S. Magistrate Howard Snyder ordered Helmichheld under a half million dollars bond. and he was given a court-appointed attorney. An arraignmentwasset for Thursday morning. six square miles by the time the chop- per landed shortly before 6 a.m., came amidreports of a new outbreak of the pest. State Medflyofficials disclosed Tuesday that fruit fly maggots were discovered for thefirst time in Milpitas on the 120-square-mile target area's southeastern edge meaning another city to be added to the list for aerial pesticide bombardment As the second day of the aerial missions beganat 12:45 a.m. today. battle plans were already 14 square miles behind in the effort to overtake the voraciousfruit fly because of malfunctions during the first spraying Tuesday. Entomologists have said that each hourlost in the fight against the Medfly is critical because the generation now appearing along three sides of San Francisco Bay could spread regenerating ‘'a hundredfold San Jose Mayor Janet Hayes followed today's pre-dawn attack in a Highway Patrol chopper to see what it waslikeon the front lines in the battle to save the state's $14 billion agriculture industry "I didn't realize how vast an area’ was involved shesaid after getting off The indictment said the first exchangeof information in 1963 occurred while Helmich was in Paris and involved sensitive information about the ey cryptographic system known as U.S. Attorney Gary Betz said Helmich served in the Army from 1954 to 1966 and was cryptographic custodian in Paris and Fort Bragg, N.C. Betz said Helmich had worked in variety of jobs since 1967. The indictment charged Helmich “delivered and transmitted documents, instrumentsand informationto be used to the injury of the United States.’ Betz said the maximum penalty on each countislife in prison. Helmich is a native of Florida and ne as an Army warrant officer from 1954 to 1966, ve Still have a long, long wayto go,” said a staff aide. Marriott explained that in 1966, with the completion date of the Bonneville Unit projected for 1982, its estimated cost was $325 million. The projected completion date is now around the end of the century and,at the currentrate ofinflation, Marriott said Bonneville’s cost could be morethan$2 billion Morethan $291 million has been spent on the unit since 1962. Marriott blamed the delays and high costs on ‘numerousdelaysin construction, which included a threatened cancellation of the entire project by President Carter in 197." The CUP,he added in a newsletter sent to constituents this week,is ‘‘an expensive, burdensome beast and a thorn in the side of administrations of the past 1 ¥2 decades who have been dealing with powerful eastern lobbyists who maintain that the funds can be better spent elsewhere.”’ Marriott says the need for CUP water is even more urgent with such potential projects as synfuels development and the MX missile being considered for Utah. Fruit Flies Infestation Spreads JACKSONVILLE, Fla. (UPI) — Joseph George Helmich, LARRY SWENSEN at San Jose's airport. Bifigy protests fruit flies spraying. ‘It (the WASHINGTON (UPI) — Inflation will run lower than expected, but unemployment will rise slightly and economic growth,if any. will be sluggish fortherestof 1981, the administration reported today in its midyear forecast. The Office of Management and Budget report said consumer prices are expected to average 9.9 percent higher during 1981 than last year. In March, the administration projected an 11.1 percentrise. The administration said declines in inflation rates for fuel and oil contributed to the lower-than-expected rate of increase. However. the report highlighted two effects ofits anti-inflation policies that will be less welcome to Americans. —"Little or no real output growth is expected during the remainder of the year,’ the report said. The administration expects unemploymentto average 7.5 percentthis year. rising as high as 7.7 percent in the final quarter. Unemployment recently stood at 7.3 percent. —Interest rates are running higher than it projected in March, the administration noted. Interest on threemonth Treasury bills is expected to average 13.6 percent for the year. compared with 11.5 percent last year. However, the report noted these rates recently have dropped from tieir peaks, and it anticipated further declines in the secondhalf of this year. The report showed that higher than expected interest rates are hurting the government’s pocketbook. just as they affect people who buy cars or houses or take out business loans. The higher interest rates result from the Federal Reserve's efforts to tighten the money supply to combatinflation. and from continued strong demand for business and other loans. Wednesday: U.S. Industrial Output Drops WASHINGTON (UPI) — Despite increased coal and auto output, the nation’s industrial production declined slightly in June. the second monthly drop so far this vear, the Federal Reserve reported today. Industrial production edged down 0.1 percent in June after seasonal adjustment, reflecting declines in the output of construction supplies. home goods, and manufactured items. School Board Urges Mill Increase The Provo School Board is asking local residents to approve a 6.7 mill increase in the district's voted leeway. Without such an increase, board memberssay the district will lose its best teachersandwill not be able to offer students the kind of highquality education that has been available in the past See story on Page 3 Baseball Upset May Settle Today The man who has assumed the gobetween role in negotiations between baseball players and ownerssays a settlement may come today. The talks in New York began at Herald deadline. The go-between, Steve Greenberg, is optimistic. For a roundup of stories on the canceled all-star gamein Cleveland and a preview of the British Open, see Page6. Scientists Begin Radiation Tests Colorat's State University scientists are conductingtests to learn if radiation from nuclear bombtests in the 1950s may have been responsible for causing cancer The head of the CSU teamsaid, “We're trying to do a reconstruction of what may have happened based on computer models,”’ See story on Page 9 Fair Weather to Continue Fair weather is forecast through Thursday for Central Utah, Over- night lows are expected to be in the 60 to 65 range with Thursday highs in the mid-#0s, A national weather story and temperatures are on Page 10, Here’s Where to Find It All spraying) was boring up and back up and back. It was likeplanting corn in Towa.” Agriculture .. Amusements Arts A second helicopter had been ordered into service, but remained on the ground with mechanical problems, spraying project leader isi Siddiqui said, Classified Ads Comics .... Community Not.s Crossword . Education ..,...... |