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Show .1 Ir.j.i ity rf Univ?r'. Fait ity, C i.'ij - ? Ki " 77 , rjnwwjp wl jj (,, ... lit h Kli2 M'.h " Xf VOLUME 172 NUMBER 109 SALT LAKE CITY. UTAH 0Piu Seen Drying Up Medical Supply . See details page 4. To i - little effect on curtailing narcotics addiction. Taiwan Banking Law Revision SACRAMENTO The California of Insurance is being Department urged to hire an electronic data processing consultant for the pur-th- e poses of auditing computerized insurance records, This is only one of the recom-havin- g mendations made by a legislative committee investigating the Dr. William Beaver told an in- - insurance Co. tanaUnuI jyrapoeium on "pain, Equity Life, a subsidiary of Equity May 24, that American Aug firms Fundng Corp. of America, is already are feeling die shortage of alleged to have created some 56,000 opium. The most important opium- insurance policies which were based drugs are morphine, codeine and noxolone, a specialized drug which is successful uniquely rapidly reversing all the 1st Peace Professor in overdose. Almost all the synthetic drugs compounded to substitute for morphine are at least as .easily abused as morphine, Dr. Beaver and none of them has stood the said, . . , . Ln.eJ? I'Phme.,fr?t 1803. He said no synthetic postgraduate and undergraduate banking reform. The. basic banking law, which the new enactment revises, was itself first adopted in March, 1933, at die depth of the worldwide depression and in a very different national and world scene. It has been partially revised three times since. Among other things, the new law would: Remove die provision that a secure loan cannot exceed 70 per cent of the total value of its backup mortgage or other collateral. Remove a present ceiling on loans without security. Authorize banks to 'assess the security on the basis of going prices. government-approve- d Presently, to be used as a basis for have prices assessment. Catalogue banking institutions into four categories. These would be commercial banks, specialized banks, trust and investment companies, and savings banks. Lobby Registration Ordinance Valid, AG Opinion Holds - SACRAMENTO (UPI) Attorney General Evelle J. Younger says an Orange County ordinance requiring local governmental lobbyists to register and disclose their employers is valid and legal. Youngers opinion, issued Wednesday in response to inquiries from Sen. Dennis E. Carpenter, R- -. Newport Beach, and Orange County Counsel Adrian Kuyper, also noted the ordinance need not exclude county employe recognized their and represenorganizations tatives. Younger said that under the. California Constitution a county may adopt and enforce ordinances which are not in conflict with general laws. Die ordinance, he said, is not in conflict with any general laws and thus is valid. JSyllabus KERN COUNTY LAND CO. v. OCCIDENTAL PETROLEUM CORP. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT 71-10- Argued December 59. 5-- 6, 1972 Decided May 7, 1973 During a campaign, respondent bought more than of the outstanding stock of petitioners predecessor (Old Kern). Respondent was blocked in its takeover efforts by a defensive merger between Old Kern and Tenneco, in which Old Kern stockholders were to receive new Tenneco stock on a baas. Less than a month after its initial tender offer, respondent thereupon negotiated a binding option to sell to Tenneco at a date over six months after the tender offer expired all the new Tenneco stock to which respondent would be entitled when the stock yielded respondmerger took place. Sale of the ent a profit of some $19 million, which petitioner sought to recover by a suit under $ 16 (b) of the Securities Exchange Act of 1934, prohibiting profitable short-swin- g speculation by statutory insiders. The District Courts summary judgment for petitioner was reversed by the Court of Appeals.' Hdd: The transactions, which were not based on a statutory insiders information and were not susceptible of the speculative abuse that 16 (b) was designed to prevent, did not constitute sales within the meaning of that provision. Pp. 9-(a) There was nothing in connection with respondents tender-offacquisition of Old Kern stock or the exchange thereof for the Tenneco stock that gave respondent inside information, and once the merger, which respondent did not engineer, was approved the Old stock exchange was involuntary. Pp. 8. The option agreement was not of itself a sale; the option (b) was grounded on the mutual advantages to respondent as a minority stockholder that wanted to terminate an investment it had not chosen to make and Tenneco whose management did not ' want a potentially troublesome minority stockholder; and the option was not a source of potential speculative abuse, since respondent had no inside information about Tenneco or its new stock. Pp. 18-2- 2. 450 F. 2d 157, affirmed. tender-offe- r 10 . post-merg- er 22. by $200,000 so that more qualified investigators can be hired. But, Ts this the answer? . The Equity deal, reportedly1 engineered by 12 to 18 employees of the firm, concerned computer fraud which was perpetrated at night and on weekends by highly skilled technical people who knew how to program and manipulate two dif- 6-- White, J., delivered the opinion of the Court, in which Burger, C. J., and Marshall, Blackmux, Powell, and Rehxquist, JJ., joined. Douglas, J., filed a dissenting opinion,' in which Brexxax and Stewart, JJ., joined. ng computers. Knowledge of the scandal would not have been known if one employee hadnt spilled the beans. This week, William Behnk from the office of Legislative Analyst A. Alan Post, told the committee'about problems within the insurance department, According to Behnk the ment has been plagued with problems finding enough qualified examiners, and until recently had a huge volume of vacancies in the division which audits insurance companies. Roundup Draws Chicano Wrath - rs . truth-findin- . . 6 depart-wron- g ng 347-memb- er 14-1- . ferent in several recent years, some of the fundg authorized for the departments use were not spent restraining order against the a rather high number 0f strike in January and February field examiner positions were not 1971. The 14 teachers were sentenced filled, Behnk told the committee. to six months imprisonment and Statistics indicate that of the 60 fined $400 each, with five months of authorized positions, as many as 10 the jail term suspended. , at a time were not filled. Howcvcr, The court ruled the amount of the in recent months, these positions fine did not mean the Association have been filled. was entitled to a jury trial. Lawmakers could demand that It must be remembered that administrative changes be made there is no universal right to a jury requiring an investigation of all merely because of the risk of a insurance firms doing business in dollar judgment, the court said. California. The Justices considered the When the insuance department is central issue in the case was the elementary need that the orders of at full strength it costs no more to the judiciary be obeyed and obeyed, handle more investigations because at once. The court said the public these are paid for by the firms being strange cir- wrong outweighed any con- investigated a cumstance indeed. siderations for a trial. jury The fine against the Association amounted to $50 per teacher and hence the impact on the underlying membership is modest in die light of the public wrong, the court said. A special LOS ANGELES (UPI) The Fair Lawn Board of alien roundup aimed at illegal Education obtained the restraining border-crosseto from Mexico and end this court the said, order, conCentral America has taken into public wrong, but the strike tinued in defiance of the order. The custody 2,000 persons in less than a power must be the courts to end the week, police said, May 30. public wrong by a procedure which, Inspectors from the Immigration g not and Naturalization Service resumed while impairing the will not relief a raids after a holiday hiatus. Aided deny by process, in it. affording by teams of border patrolmen, they delay The court said it is a settled rule arrested 600 illegal aliens, that such strikes are illegal.' under a Most of the raids were on 1968 decision involving the Borough businesses with records of hiring of Union Beach. many illegal aliens. time-consumi- er co - 12-d- ay share-for-sha- re Kem-Tenne- (D-Chu- la sizeable fines for use as tools to compel compliance with orders to right public wrongs. The court must be able to compel immediate compliance if the court is to be equal to its responsibility under government, Chief Justice Joseph Weintraub wrote in the opinion. A court order reflects an underlying already done or threatened, coupled with an urgency or some inadequacy in the ordinary remedy which mandates a coercive reEedy.M The fine was imposed after the Association and 14 teachers were convicted of contempt by the judge without a jury for refusing to obey a SUPBEME COURT OF THE UNITED STATES No. far enough in advance, so that legitimate policy holders and other investors would not be put in jeopardy? Although Equity Funding Life is based in Century City near Beverly Hills, it was an Illinois charter company. California officials allege jt j8 the responsibility of the Illinois officials to investigate the firm. The Assembly Finance and Insurance Committee is undertaking an investigation which would be a big step in solving the current problems. Committee Chairman Wadie L. Deddeh Vista) said this week he will sponsor legislation to beef up the department of insurance to stop the next Equity Funding-typ- e fraud before it gets very far. Deddeh said his bill will augment the insurance departments budget Court Appellate Division ruling studies in its Department of Peace denied the Associations contention studies. it should be entitled to a jury trial to determine whether the fine was proper. The Justices said the courts need The new law still must be ap- countering severe pain, proved by the Legislative Yuan, or Parliament. However, it has several things going for it, including the fact that the statute was drafted, and response to repeated calls for' Jersey Court Hits Defiance Of Strike Ban By William M. Coombe BRADFORD, England (UPI) The State TRENTON (UPI) Harvard Universitys Prof. Adam Court, using strong Curie will take up his chair in July as Supreme to defend the power of the language of the worlds first Professor Peace. to halt illegal strikes, The Bradford University chair judiciary a $17,350 fine was established with the help of a upheld, May 21, Educatior Lawn the Fair grant from the Society of friends against walkou' teachers' a for Association (Quakers). The university even-- in 1971. tually plim to offer , both The 0 affirmation of' a Superior effects of a narcotic in court-appointe- - life-threateni- ng drug is as potent as morphine in industry. Cabinet, in- - . then factored or sold to other backup insurance companies to build up the value of the parent company. As a result, the life Insurance company is operating through a d administrator, and the parent company is bankrupt. Why didnt the state insurance department catch the Equity action Life py TAIPEI (ACCN) The Executive Yuan, or Cabinet, of the Chinese Nationalist Government has approved the draft revision of the regimes new banking law, according to Free China Weekly,, published here. Under the statute, banks will be given much more flexibility in their lending operations. The aim is to make increased credit available for Taiwans expanding business and approved by the Action Seen Wake of Equity Scandal solvency of Equity Funding . Ease Credit Aai In A SEATTLE, WASH. (UPI) Georgetown University professor warns that U.S. pressure to reduce worlds opium poppy crop would deprive millions of patients, of their most effective pain reliever while THURSDAY, JUNE 7, 1973 |