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300 church mortgages threatened
Church finance plan said near collapse
SALEM, Ore. (UPI) — State investigators are probing
an 111 million church financing plan that is near collapse
in Oregon, UPI has learned, threatening the mortgages of
300 churches around the nation.
Also threatened are the investments of about 7,000
church members, according to court documents.
The Oregon Corporation Commission, which regulates
securities sales in the state, has filed suit in Marion
County Circuit Court in Salem against the operators of the
program, headed by a Salem minister.
Two other civil lawsuits also have been filed naming the
Rev. Atwood Foster, president and chief operating officer
of Church Service Programs, a nonprofit Oregon
corporation; and Continental Securities Corp.
The Marion County Court Monday issued an injunction
prohibiting the corporations from further investments.
Healy’s suit alleged some of the money was used to
“invest in speculative loans and investments unrelated to
church financing or any religious purpose."
The other two suits were filed in the Multnomah County,
Ore., court and in Oregon’s federal district court by a
group of chiropractors who sought financing for a school
BAI LYNEWS
Higher beef prices
Cattlemen disagree
on the cause of it
Dr. 0. E. Sell, president of the
Georgia Cattlemen’s
Association, said Monday the
price of supermarket beef in
most parts of the state will
remain high until feed prices
come down.
Sell disputed a claim by the
American National Cattlemen’s
Association in Denver that
ranchers are withholding cattle
from the markets to fatten
them on new grass.
The national association, in
its April market survey of 19
selected cities, showed the
average price of five represen
tative cuts of beef was $1.34 per
pound, compared to $1.27 in
March.
“Grain prices have been so
high throughout the year and
feed lot operators lost so much
money that they kept the cattle
off the market,” said Sell.
“It’s going to take lower feed
prices (to drive down the cost
of beef),” he said. “Feed prices
have come down some but they
are still up.
Sell said the number of feed
lot cattle being shipped to
slaughterhouses “is not much
above 60 per cent capacity. It
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HOUSTON—The Rev. Austin Wilkerson (1) carries out a marriage ceremony for diving
school owner Joe Jordan and Roberta Fry (r) while the couple hold up signs stating their
intensions. The two were married Sunday in a diving tank while wearing scuba gear. (UPI)
GRIFFIN
looks like there is a good grain
crop coming in, but until that
time we will have a high price
on beef.”
He said “quite a few” feed
lot operators, including some in
Georgia, went bankrupt be
cause of the high prices for
feed such as milo, corn and
grain.
Sell took issue with a
statement issued by Gordon
Van Vleck, president of the
American National Cattlemen’s
Association, that ranchers were
withholding cattle from mar
kets to fatten them on spring
grass.
“It’s nothing that anybody
has been withholding,” said
Sell. “The feed lot operators
have just been losing too much
money lately.”
But Sell agreed with the
national association’s finding in
its April market survey that the
average price of beef reached a
peak of $1.40 per pound or more
in cities such as New York,
Portland, Atlanta, Baltimore,
Detroit, Omaha and Washing
ton, D.C.
of chiropractry through Foster’s corporations.
Those suits alleged that Foster diverted corporate funds
for other investments.
Foster and his wife were reported to be vacationing in
Arizona, and could not be reached for comment.
Church Service Programs and Continental Securities
were founded by Foster about 10 years ago for nationwide
church financing purposes.
The two firms are now in a combination of receiverships
and trusteeships. The Multnomah County Court has also
enjoined Foster from disposing of any property.
Thomas Higashi, appointed trustee for the corporations
by the Marion County Circuit Court, said in a report filed
with the court that church mortgages, put up as
collateral for loans arranged by Foster or the
corporations, are now in default.
The total value of the mortgages, most of them held by
the American Guaranty Life Insurance Co., is estimated
at about $3 million, Higashi said.
Also in default, Higashi said, are about $950,000 in
unsecured promissory notes made to Foster’s
corporations by about 140 church members.
“I also expect (the price) to
continue upward because there
are fewer finished cattle on the
market,” he said.
Sell added that the Georgia
Cattlemen’s Association
planned selective direct-to-con
sumer sales of ground beef this
month similar to the statewide
sales that were conducted on a
statewide level by various
chapters of the association
during the first weekend of
April.
“There are a few individual
associations that may have a
second ground beef sale this
month and there may be
several that will have some
later,” he said. “I cannot tell
you now who they are or where
they will be.”
The statewide sale brought
“a tremendous response” and
many chapters in large met
ropolitan areas such as Atlanta
exhausted their beef quotas in
short order, said Sell. The
chapters took orders for six
pound packages of ground beef
at $4 per package to stimulate
the sale of surplus meat.
S6OO-million promised MARTA
ATLANTA (UPI) - The U.S.
Urban Mass Transit Adminis-
[ Aid sought
for Miller
farmers
ATLANTA (UPI) - Eighty
per cent of the farmers in
Miller County were affected by
excessive rainfall and a tornado
April 10 and their land should
be declared an agriculture
disaster, Gov. George Busbee
said in a letter released
Monday.
Busbee, who is touring
Mexico on a trade mission,
asked Secretary of Agriculture
Earl Butz to declare Miller
County in southeast Georgia an
agriculture disaster area due to
rains, flooding and a tornado.
Busbee told Butz that 290 of
the county’s 365 farmers were
affected by the excessive
rainfall and tornado. The storm
damaged 55,000 acres, or 55 per
cent, of county land under
cultivation.
Peanuts, corn and field peas
are principal crops of the rural
county. County agents said the
major damage was the washing
away of seeds and chemicals in
already-prepared fields that
will have to be replanted.
County agent Bill Inglett said
the expense of replanting, in
addition to constantly increas
ing production costs, will
require additional funds for
many farmers to continue
operation in 1975. About 80
agriculture emergency loans
are expected to be requested.
“Your approval of this
request will be appreciated by
the state of Georgia, and will
help the farmers in this area to
recover from this disaster,”
Busbee said in the letter.
Sanders named
to GAB post
ATLANTA (UPI) - Bert H.
Hatch will yield his post as
executive director of the
Georgia Association of Broad
casters (GAB) to William G.
Sanders on June 10 and return
to the Episcopal ministry.
Sanders, 32, comes to the
GAB from his previous position
as executive secretary of the
Georgia Egg Commission.
A native of Hartwell, Sanders
is a graduate of the Henry W.
Grady School of Journalism at
the University of Gerogia.
During college, he served his
internship at WSB Radio in
Atlanta. After graudation he
joined the staff of WDUN in
Gainesville, where he served
for (P/z years as news director
and as operations manager. He
became executive secretary of
the Georgia Egg Commission in
1972.
Hatch, who was a minister
for seven years, will become
rector of St. Mark’s Episcopal
Church in Dalton. He has been
an inactive minister for the
past 12 years.
LONE DISSENTER
ERIE, Pa. (UPI) - Only one
of the three barbers in Terry
Etzel’s Barber Shop refuses to
go along with the new service
being offered.
The new service is shaving
women’s legs, and the lone
dissenter is a women, Ruth
Bonnell, who said she “won’t
even consider shaving a guy’s
leg.”
In addition, as much as $8 million may be owed to about
7,000 church members who hold certificates for pledges
they made to help finance building programs for their
churches, according to figures compiled in the report.
The pledges were also used as collateral to secure loans
for church construction or remodeling.
In effect, the congregation put up the money on a long
term loan basis to help their churches. The pledges,
mostly for SI,OOO, were to be paid back in 25 years at 1%
times their original value.
Foster’s corporation purchased life insurance policies
on each congregation member who pledged money via the
certificate program. The policies were then used as
collateral to secure the church loans.
The life insurance company thus holds the insurance
policies, now in default, and most of the mortgages, also in
default.
Foster invested the cash values accrued on the life
insurance policies in ventures intended to earn a return
high enough to keep the plan afloat, according to Higashi’s
report.
But, according to Healy’s lawsuit, the investments did
not earn the return expected.
tration has committed S6OO
million to the Metropolitan
Atlanta Rapid Transit Authority
to build the city’s $2.1 billion
rapid rail system.
Alan F. Kiepper, general
manager of MARTA, said
Monday the commitment is the
largest of its type to an
individual transit system in
federal history.
Kiepper said MARTA would
have liked a commitment for
the entire project “but the
reality of available federal
support funds for transit
purposes makes this unrealistic
at this time.”
Kiepper said, however, he felt
lift'.
Debra makes Gordon her home.
English student
samples Gordon life
The following story is
reprinted from Gordon
College’s student newspaper,
“The Reveille”.
By LAURA MELTON
Among the many new faces at
Gordon this quarter, is that of
Debra Galletly, an 18-year-old
native of Middlesex, England.
Debra came to the States
about a year ago to visit friends
in Washington, D. C. and to see
some of our country. Her
mother had received a job in
Griffin as governess to a family
so Debra came to Griffin to stay
with her.
As Debra feels nursing is her
calling, she began looking at
various nursing programs in the
surrounding area, and she felt
Gordon had the most to offer in
her field of study.
Planning to begin Gordon’s
nursing program in September,
she is taking necessary courses
to fulfill the obligations of this
program.
The hardest thing for Debra
to adjust to is our American
food. She despises ice tea;
however, she has hot tea with
milk every afternoon at 4, which
is an old English custom.
It is also difficult for her to
become accustomed to all the
cars here in the States as every
Englishman does not have a
car.
She catches herself quite
often driving down the left hand
side of the road, an English law.
The vast majority of
automobiles driven in England
are Capris, Fiats and other
small European-made cars.
“The average American car,”
Debra says, “would be too wide
for the English roads, for it
would take up the whole road
instead of one side.”
Another different facet of
English life is that of public
that “the mood” of the
Congress and the people fa
vored public transportation
over private cars and would
mean additional federal funding
when needed.
The commitment came in a
letter from Frank C. Herringer,
Urban Mass Transit adminis
trator.
John Wright, MARTA board
chairman, said the federal
action means the authority can
proceed with its construction
program free of uncertainty on
funds.
MARTA had previously re
ceived almost S2OO million for
transportation to and from
school. Debra rode a train and
bus to school daily, but she also
says people walk more there.
The Educational System in
England is much more techni
cally oriented than the
American. The average English
student graduates from
secondary school at 16. He then
goes to work or a technical
school, as not everyone may
attend college. Debra said most
of her friends started work
when they were 16. It is also
hard to find a job there now.
Debra finds herself not
dressing as heavily because of
the differences in climate
between Georgia and Eng
land. She said a friend had just
colder in England and gets
foggy. She said a friend had just
written her that there is snow on
the ground now.
Hoping for good health here in
the States, Debra discussed
socialized medicine which is
practiced in England. All
medical bills are paid by the
government, which also trains
the doctors and nurses.
Prescriptions do not vary in
price, as all drugs have the
same set price. If 18 or older you
have to pay dental bills,
otherwise they are free.
Debra participates in netball,
which is similar to our game of
basketball, and has a yellow
belt in Judo.
She also likes camping, site
seeing and playing the guitar
and piano. Debra is an active
member of St. George’s
Episcopal Church in Griffin
where she is a member of the
choir.
“Dorm life is enjoyable but
noisy,” Debra says. “I like
Gordon where the faculty and
administration are extremely
nice and helpful and the
students are very friendly,”
said our student with an English
accent.
Page 3
— Griffin Daily News Tuesday, April 22, 1975
; R ,'v
kA.
Rusk testifies
WASHINGTON—Former Secretary of State Dean Rusk
leaves after testifying before the Presidential panel,
headed by Vice President Nelson Rockefeller, which is
investigating the CIA. Rusk refused to comment on his
i. testimony. (UPI)
the project which includes both
bus and rail transportation.
PATENT PARADE
WASHINGTON, D.C. (UPI)
— In 1974 more than 104,000
patent applications were filed
in the U.S. Patent and
Trademark Office. More than
70,000 patents were granted,
each of which involved some
thing that was new, useful and
unobvious over what was
previously known, according to
Intellectual Property Owners,
Inc., a nonprofit organization
dedicated to the preservation of
our free enterprise and present
patent systems.
News summary
By United Press International
Troops may be needed
WASHINGTON (UPI) — If Americans must be
evacuated from South Vietnam under combat conditions
President Ford says American troops would be needed. In
an interview Monday with CBS News, the President said
the Vietnamese and their families— estimated up to
200,000 persons —who sided with the United States, also
would be removed. He held out little hope a ceasefire
could be arranged and a peace negotiated with the
Communists. He also said he could understand the
feelings of Thieu, who blamed the United States for
military setbacks as he resigned.
Runway closed
SAIGON (UPI) — One of two runways at Bien Hoa Air
Base, 14 miles northeast of Saigon, was closed today
because of bombardment by North Vietnamese gunners,
using longrange 130 mm field guns. Communist infantry |
assaulted the district capital of Ben Luc, 16 miles
southwest of the capital city. The Communists ignored the
resignation of President Nguyen Van Thieu and continued
their advance on Saigon. U.S. Air Force transport planes
evacuated hundreds of Americans from South Vietnam,
speeding up the airlift as Communist forces tightened
their ring around the city.
Resumes broadcasting
Radio Phnom Penh resumed broadcasting for the first
time since Thursday and Khieu Samphan, deputy prime
minister of the new government, spoke for 15 minutes. He
said his Khmer Rouge regime would follow a policy of
neutrality and nonalignment. Samphan gave no details of
what has happened in Phnom Penh since the takeover of
the capital. However, in an earlier broadcast Information
Minister Hou Nim said guerrillas were still fighting in the
provinces to put down the last pockets of resistance.
1,000 families flee
The Grand and Red rivers overflowed their banks and
forced 1,000 families from their homes in Lansing, Mich.
Damage was estimated at SSO million, but there were no
deaths or injuries. In Minnesota and North Dakota, the
Red River climbed toward its crest, spilling over into
lowlands of the Red River Valley. The river was expected
to crest at 28 feet today at Fargo, N.D, and 34.5 feet at
Halstad, Minn., but no major flood problems were
expected at either place.
Flying machine
ST. JOHNS, MICH. (UPI) — Edward Ernst, a retired
automotive, wood and plastic model maker, who has
never had a flying lesson, is building a man-powered
flying machine. His contraption is a tubular metal frame
on four bicycle wheels with two propellers up front. If it
works he may win a $120,000 prize offered by a British
businessman in 1959. Ernst has been working on his
machine for 14 years.
Trip is off again
WASHINGTON (UPI) — An on-again, off-again trip to
South America, is off again. Secretary of State Henry A.
Kissinger, in a statement released Monday night, said
President Ford had asked him to stay in Washington
because of the speed with which events are unfolding in
Indochina. In his statement Kissinger said he looked
forward to working with his colleagues at the OAS general
assembly in "Washington next month.
More trouble
LAS VEGAS, Nev. (UPI) -
Two small dogs digging for
buried bones found $30,000 in
counterfeit money instead, lead
ing to more trouble for Robert
Schwing.
The Secret Service said the
two dogs dug up a plastic
garbage bag filled with 1,500
counterfeit S2O bills in the yard
of a neighbor of Schwing’s. The
dogs had dragged it for 25 feet
when a teen-age boy discovered
it.
Secret Service agents arrest
ed Schwing when he returned
from Florida, where he had
been saying goodbye to rela
tives before returning here to
begin a one year term for
counterfeiting. Another counter
feiting charge was brought
against him Monday.