Show 8A Ogden Standard-Examin- school Thursday May 24 1984 er jnvesfm wiii reward Calif (AP) — Risky investments by three financial officers “shooting dice with public money” have cost the city of San Jose $60 million and officials say roads parks and some other major projects SAN JOSE non-drink- er WEST MILFORD NJ (AP) — Graduating seniors who do not drink alcohol or use drugs during commencement weekend will be rewarded with a dance and a trip to the seashore says the principal of West Milford High School The offer is being made to the 376 seniors graduating on June 23 in an effort to prevent alcohol- and d traffic accidrug-relate- dents Principal Thomas Kraft said Tuesday “We want to prevent any disastrous results that might come of a graduation drinking party” Kraft said will have to be postponed Officials said the problem began with city money being tied bonds that fell up in long-terin value and worsened as the officers tried even riskier investments to recover the losses The officers have been put on leave while an audit team hastily assembled last week reconm structs financial records “down to the gnat’s eyelash” City Man- ager Jerry Newfarmer said currently no suspicions of “personal involvement or taking from the till” on the part of Finance Director Kent South Treasurer Dick McCoy and investment officer Arthur Matthie-se- n Roads parks and other major capital projects will be delayed at least a year because of the loss Mayor Tom McEnery said at a press conference announcing the steps the city had taken to get rid of the investments “This is a very very serious problem for the city of San Jose” McEnery said In a long statement detailing the investments McEnery and others said the financial officers: Decided in Newfarmer said there were mid-198- to in 2 0 miHoini S©§ft ditty vest large amounts of city monbonds that ey in long-terwould not mature for an average and they got sucked into a downward spiral” said Jerry a stock broker and member of the City Council “They were shooting dice with public money” In a series of moves that ultiEs-tru- th m 17 years Mistakenly listed rises in the bonds’ value as actual interest income making it appear that the city had more money to spend than it did Reacted to drops in the mately cost the city $60 million officials decided Monday their best course was to sell $106 million in US Treasury securities and “hedge” — make financial bonds’ value in 1983 by pledging the bonds to dealers in exchange for quick cash in effect using the bonds as collateral Used the borroyved cash to buy still more bonds and some but riskier securities in hopes that the stock market short-ter- m would improve “Like any novice investor they were reluctant to take a loss On Tuesday students who want to participate in the program will be asked to sign pledges promising not to use drugs or alcohol during the commencement weekend Their parents will be asked to agree not to serve liquor The commencement will be held on a Saturday morning and those who keep their promise — the honor system will be used — d can attend a dance that night and take the trip to the shore the next morn- deals to eliminate the 'risk — on $308 million in Treasury futures the city held Those moves were made to cover cash flow needs for the city’s annual budget of $500 million and to pay off $54 million that had been pledged to dealers in the effort to raise cash Fabrnes soay no phone or mail orders Even with the loss Estruth said the city would have lost another $2 million by Tuesday if it had not acted because of the plunging market “A conscious decision was made not to continue to play the market any further” McEnery said Reached for comment South said he was “personally engaged in no wrongdoing” and said he had not handled his job ineptly CARPET SALE Bigelow -Sanford & Mohawk Fiimd (973) school-sponsore- ing Kraft said At least 50 percent of the seniors at the Bergen County school are expected to participate and Kraft said the program’s success will depend on student involvement in the planning of the weekend and peer pressure encouraging observance 117 of the rules prints and solids in nylonspandex “The strategy was to sit down with the students and come up with what they consider their alternative and we hoped that one student would then sit down and convince the other to go” he said all-cott- 137 reg 229 yd Flannel II flameproof poly prints solids 137 reg 229 yd dress print cot- yd printsoiid ” flannel 36”-45- on reg 189 yd 147 basic no-iro- n cotton poly35 tons and polycottons galore 1 37 reg 229 yd plaid and reg 219 yd children’s print clearance: 45” polycottons 117 reg 169 yd single knit prints and solids no-iro- n gingham checks are 65 cotton Adelphi seniors have helped plan two dozen drinking-fre- e graduations during which there have been no students involved in a fatal automobile accident striped shirtings 65 35 cotton ng poly35 1 poly 37 reg 229 yd printed and sportswear weight fabric 45” wide Start summer sewing in earnest Gathered eyelet trims Lightweight fleece solids 79c Kraft said “We’ve had deaths through just want to make sure there is no connection this time” Kraft said adding that he could not remember the last time a student from his school died in an car crash reg 189 yd 45” 189-19- 9 45” broadcloth: 65 doubleknits in 60” designer cuts New Jersey is modeled after one in use at New York’s Adelphi University I 127 reg 149 yd dress print special on polycottons 45” wide 117 reg 149 yd polyester 147 reg polycotton 117 The principal said the program believed to be unique in the years and 127 reg 149 ea active wear reg to 249 yd nightwear softies 45”-54- ” stretch stripes 379 3s1 reg to 699 yd special opportunity to add frothy favorites wide Traditional indigo denim Pretty polycottonspandex 45”-60- ” 199 reg $4 yd wide sturdy jeansjacketsskirts 60” widths alcohol-relate- d New Student reaction to the offer T-shi- rt has been mixed Kraft said “There’s been some that think the idea is good but don’t know whether they can participate in it” he said prints are in The incentives are being offered not only to prevent injury or death but also to keep students from losing their licenses for drunken driving Kraft said The drinking age in New Jersey is 21 but Bergen County borders New York state where neat little designs on single knits 229 New children’s print canvas Print gauze and osnaburg New printed reg 399 yd hefty polycottons 45” wide reg 599 yd summery polycottons 45” wide reg to $3 yd puckery polycottons 239 reg $5 yd Friday 10 am seersuckers 229 229 Door Crashers— limited quantities the legal age is 19 Byrd warns on strained Soviet ties udgett Domestics Very Terries — Senate Democratic leader Robert relations Byrd says have reached their lowest point in 20 years WASHINGTON US-Sovi- (UPI) phone or mail for yours— layaways 20 et Friday 10 with the “hot rhetoric” on both down for 60 days am Door Crasher ' fy'" " Printed beach towels 499 and 699 sides threatening 1 world peace Reg 799 and 999 sizes 24”x44” and summer novelty prints on pure white cotton terry loops from Barth & Dreyfuss neatly hemmed and ready for swimming or sunning Byrd’s com-- s ments followed a Soviet an-- $ 30’’x60” nouncement that the number of Soviet arrying submarines off US shores had been increased and missile-c- Cannon ‘Acclaim’ cotton towels they could strike targets within a few minutes Soviets say the action was in 399 299 response to the deployment of Pershing-- 2 missiles in Western Europe The West Virginia Democrat said the Soviet announcement has increased tensions between the two countries n rela“I think tions are at the lowest ebb in 20 years” he told reporters shortly before the Senate met 1 49 No-iro- n “The hot rhetoric on both sides is just getting out of hand” I I 999 Reg 1299 square 52”x52” 1 299 Reg 1699 oblong 52”x70” 1 599 Reg 1999 oblong 52”x90” or round 60” 1 799 Reg 21 99 oblong 60”x90” or round 68” Terrific terry tablecloths Besides being so attractive— Colonial Checks Pennsylvania Dutch Mushrooms Farmer’s Basket— polycotton with stain they can take care of themselves release finish to toss in washing machine and dryer after daily dining alfresco affairs picnics all summer long reg 269 wash 12”x12” Full loop super absorbency— only the 86 cotton touches you with 14 poly for extra softness and luster Double dobby border on the most fashionable new solids: melon beige peach vanilla pink blue— first quality Budget Domestics (971) Soviet-America- f reg 799 bath 24”x46” reg 599 hand 16”x26” v he said But Byrd said the Soviet sub- marine announcement is not new “We’ve had them close” he said adding that US submarines also are close to the Soviet Union l 0 Shop by phone: — - - With your ZCMI Option Charge Account Call toll-fre- e 24 hours a day in Salt Lake City Utah 321-666- 6 outside Salt Lake ' r"” - —i Western United States n V i |