Pags2
Monday, April 13, 1937
Daily Nobraskan
3V
By The Associated Press
News
Tenaco Inc., files for Ibantaiptcy
NEW YORK Oil giant Texaco Inc.,
fighting an $11 billion judgment in
favor of Pennzoil Co., filed Sunday for
protection from creditors under federal
bankruptcy laws. It is the biggest U.S.
industrial company to take the drastic
step.
The filing under Chapter 11 of the
U.S. Bankruptcy Code does not mean
Texaco is insolvent and should have
little or no effect on its day-to-day
operations. But it means Pennzoil will
be unable to seize any Texaco assets
indefinitely.
Analysts interpreted the move by
Texaco, the nation's third-largest oil
company, as a tactical measure to stall
Pennzoil and pressure the rival into a
settlement of their two-year-old court
battle, in which Pennzoil accused Tex
aco of illegally interfering in a planned
merger between Pennzoil and Getty Oil
Co.
"Pennzoil has placed its own greed
above any consideration of fundamen
tal fairness or the public welfare,"
James Kinnear, Texaco president and
chief executive officer, told a New York
news conference announcing the Chap
ter 11 filing. "Pennzoil has bludgeoned
Texaco with unreasonable demands."
Kinnear said Texaco was forced to
seek bankruptcy-law protection because
the Pennzoil judgment was frightening
customers and suppliers, and making
it harder for Texaco to arrange credit.
Under Chapter 11, a company con
tinues operating but is shielded from
creditor lawsuits while it works out a
way to pay debts. The company's com
mon stock likely will continue trading,
but Texaco said it would immediately
suspend stock dividends.
Texaco has been fighting in Texas
and federal courts to reverse a 1985
ruling in favor of Pennzoil and to lower
an order that it post security equal to
the $8.5 billion judgment and interest.
"Pennzoil thought we took Getty Oil
away from them unfairly. We belive we
won Getty fair and square," said Kin
near. He called the move "a most diffi
cult, painful and wrenching decision
. . . however, we had no choice in the
matter."
Editor
Managing Editor
Assoc. News Editors
Editorial
Page Editor
Wire Editor
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Sports Editor
Arts & Entertain
ment Editor
Photo Chief
Night News Editors
Night News
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General Manager
Production Manager
Advertising
Manager
Publications Boaid
Chairman
Jeff Korbelik
472-1766
Gene Gentrup
Tammy Kaup
Linda Hartmann
Lise Olsen
James Rogers
Scott Thien
Joan Rezac
Chuck Green
Scott Harrah
Andrea Hoy
Mike Reilley
Jeanne Bourne
Jody Beem
Daniel Shattil
Katherine Policky
Lesley Larson
Harrison Schultz.
474-7660
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Homeless wait for cleanup
of deadly chemical spill
Jfihslnn 1
hTRAiri diaiu aa t
PITTSBURGH Throughout the city's
East End, churches stood silent on
Palm Sunday and thick stacks of news
papers sat unsold in the rain while
about 1 6,000 evacuees waited for workers
to remove a derailed tanker's deadly
chemical cargo.
The tanker was among 34 railroad
cars that toppled off the tracks when a
Conrail freight train en route to Chi
cago derailed and plowed into another
freight train headed in the opposite
direction Saturday afternoon.
No serious injuries had been reported
by Sunday, although 14 people were
treated at hospitals for breathing prob
lems immediately after the derailment.
People living within 2.6 miles of the
accident were advised to leave their
homes immediately, but were allowed
back six hours later after the leak was
plugged. They were told to be out of the
area again by noon Sunday, when emer
gency crews would attempt to remove
the derailed tanker.
Shortly after midnight, however, the
chemical began seeping again from the
tanker and East End residents were
awakened by wailing sirens and police
bullhorns.
By daybreak, about 15,000 people
had been evacuated, many by city
buses to a downtown convention center
where Red Cross and Salvation Army
volunteers handed out free coffee and
donuts and arranged a Palm Sunday
Shultz says he '11
talk to Kremlin on spying
HELSINKI, Finland Secretary
of State George P. Shultz said en
route to Moscow Saturday that he
would confront the Soviets about
eavesdropping and the "very hostile
environment they set up" at the U.S.
Embassy.
But Shultz also said he was tak
ing a well-prepared agenda and "a
constructive spirit" and "if the
Soviets have the same spirit we
should be able to move the ball
along in a very positive way."
Shultz outlined his plans at a
news conference in Shannon, Ire
land, while mechanics refueled the
two U.S. Air Force jets that carried
him and his team from Washington.
The secretary of state and his
entourage of about 100 aides and
security personnel stopped in Hel
sinki to rest overnight and then
Shultz will meet with Finnish Pres
ident Mauno Koivstoand Foreign
Minister Paavo Vayrynen. The U.S.
delegation will fly to Moscow today.
Shultz told reporters the United
States is willing to consider a prop
osal by Soviet leader Mikhail S.
Gorbachev for independent talks on
the reduction of short-range nuclear
missiles in Europe.
But he insisted that the Soviets
must recognize a U.S. right to match
130 short-range Soviet SS-12 and SS-
23 missiles or agree to a reduced
number.
Shultz said if the Soviets did
that, negotiations on' short-range
missiles could begin in six months.
The United States has no missiles
in Europe in the 350-to-600-mile
(short) range. The Soviet advantage
is one of the major obstacles to an
agreement to remove medium-range
nuclear missiles from Europe.
"The president is very upset at
what happened, as I am," said
Shultz, referring to alleged Soviet
eavesdropping at the U.S. Embassy
in Moscow.
He implied the United States as
well as the Soviet Union engage in
surveillance, but added, "We must
make it clear to them there are lim
its in unacceptable activity. So I
will talk about this."
In an escalating, public exchange,
Shultz has accused the Soviets of
infiltrating the U.S. Embassy with
listening devices, while the Kremlin
in turn said American agents had
planted microphones in the new
Soviet diplomatic complex in Wash
ington. Allegations that U.S. Marine guards
were lured by Russian women to
compromise security measures at
the American embassy added to
Shultz' woes.
Mass.
"I want to go back home. But I'm
scared to go back," said Antoinette
Ricci, 43, who spent the night in a chair
with her husband and two children.
Throughout the evacuated area,
churches were empty on a rainy Palm
Sunday morning and stacks of news
papers lay unopened in front of new-
stands. Normally busy Liberty Avenue
was empty except for police cars and
firetrucks.
Phosphorus oxychloride. a liquid
used as ar additive in gasoline and
hydrauli v fluid, turns to vapor in the air
and can be lethal in heavy concentra
tions, said Glenn M. Cannon, the city's
public safety director.
And now for something
completely different...
flfc fpomn np
1" rJ,kf & T0P,C
li
PRESENT
f .ft r
rRRTifTi'lfif
Thursday. April 16
7:30 p.m.
Union
City
Students C 2. 50 with I. D.,
Nonstudsnti $4.50
Tickets $3.C0, $5.00 st door
Tickets avsitebla st:
Doth Unions Pickles Dirt Chzzp
dams leave ie
gaey
of life, broken promises,
injustice and frustration
WASHINGTON George Gillette wept openly
in 1948 as he sold the federal government
156,000 acres of prime Missouri River bottom
land where Indians had lived in peace and self
reliance for a century.
"Right now, the future does not look good to
us," said Gillette as the Army Corps of Engineers
took control of the heart of his reservation in
exchange for $12.5 million and promises that
have not been kept nearly 40 years later.
Gillette, then chairman of the Fort Berthold
Indian Tribe Business Council, worried for the
future of the Three Affiliated Tribes, whose best
farm and cattle land soon was flooded by the
Garrison Dam in North Dakota.
"The bleak predictions have all too sadly
come true," says Rep. George Miller, D-Calif.
He and other members of Congress are work
ing to right what they see as wrongs done to the
Fort Berthold people and to the Standing Rock
Sioux in North and South Dakota, who were hurt
in the same way by the Oahe Dam.
"The Three Affiliated Tribes have never reco
vered from the economic and social destruction
of their reservation," Miller says.
Similarly, the Standing Rock Tribe was wronged
and cheated," Miller, chairman of the Interior
water and power subcommittee, has teamed
with Senate Indian Affairs Chairman Daniel
Inouye, D-Hawaii, in an effort to fashion a better
deal for the Indians.
Their starting point is a 1985 study by a spe
cial Interior Department commission. It recounts
a familiar story in U.S.-Indian dealings; native
Americans intimidated by a big government into
giving u? what they didn't want to lose.
The commission found that the dams made
life worse for the Three Affiliated Tribes
Mandan, Eidatsa and Anikara and the Stand
ing Rock tribe, which received $5.2 million for
56,000 acres in 1S53.
The commission said that fair compensation
for the last land and wsy of life is at least $178.5
million for the Three Affiliated Tribes and at
least $18.2 million for the Sioux. Fair compensa
tion could go as high as $4 1 1.8 million and $343.9
million, respectively, it said.
The quality cf life enjoyed by the tribe3 on
the river bottomlands has not been replicated in
the areas to which they were removed," the
panel said. "The dramatic rise in the incidence
of stress-related maladies and illnesses follow
ing removal of the Indians is circumstantial evi
dence that there is a causal relationship between
these effects and removal."
A commission member, Brent Blackwelder,
said the government's actions a generation ago
were "manifestly unjust" and "badgered (the
Indians) into an arrangement in which they were
not properly compensated."
"The story . . reveals an array of injustices
which to this day have gone largely unad
dresed," said Blackwelder, vice president of
the Environmental Policy Institute.
The tribes "had to give up their best land for
these gigantic dams and were transformed as a
consequence from a relatively self-sufficient
group of people into people facing depressed
economic conditions where there is little oppor
tunity and where diseases such as alcoholism
and diabetes rank among the leading causes of
death," he said.
The commission recommended that the govern
ment keep its earlier promises of low-cost power
and irrigation for the tribes, hunting, fishing and
recreation rights at the two reservoirs and
replacement of facilities like roads and hospi
tals flooded by the dams.
At a recent joint hearing by the Miller and
Inouye panels, Ross Swimmer, assistant Interior
secretary for Indian affairs, said the recommen
dations should be considered in conjunction
with Garrison Diversion, the Bureau cf Reclama
tion's largely incomplete water-delivery project.
Swimmer's prepared testimony, however, did
not mention that if the Reagan administration
gets its way, further work en the project will be
shelved at least until the early lCOCs.
He said the Bureau of Indian Affairs would be
happy to work with the tribes in carrying out
another recommendation: that the Indians be
given any excess Corps of Engineers land around
the reservoirs.
