European Stars And Stripes (Newspaper) - January 12, 1989, Darmstadt, Hesse                                Page 6 the stars and stripes thursday january 12, 1989 Dod identifies companies people facing suspension Washington a More than a dozen individuals and companies May lose their right to work on defense contracts because of information disclosed in Pentagon fraud investigation the defense department said  moves involve administrative sanctions that can be imposed regardless of guilty pleas or the out come of court  those identified tuesday As facing suspension or debarment is Melvyn Paisley the former assist ant Secretary of the Navy and a key contracting agent during the first half of the Reagan , who later became a consultant has been implicated in the investigation but not indicted. Companies facing suspension or debarment include the Hazeltine corp. And the Norden systems division of the United technologies corp., the Pentagon said. A defense contractor who is suspended or debarred loses his right to bid on government contracts. Such an action also would limit work by a consultant on behalf of defense  Federal grand jury returned the first indictments in the 2-year-old investigation Jan. 6, hours after Hazeltine entered a guilty plea to related charges. Prosecutors have said their investigation focuses on allegations that private consultants bribed government employees for information that gave client companies an Edge in winning contracts. The indictments focus on activities alleged to have been undertaken by Tel Edyne electronics a Branch of Tel Edyne industries of Newberry Park calif., an three men Navy procurement specialist Stuart. E. Ber Lin and consultants Fred h. Lackner and William l. Parkin a former Navy acquisitions official. Affidavits have suggested that Hazeltine hired Par Kin to obtain information from Pentagon employees that would allow the company to compete for a $15.9 million  spokesman Dan Howard said the Navy was putting a hold on the award of a contract tortes equipment for an aircraft identification system until Hazeltine s eligibility is determined. Among the companies and individuals who have come under suspicion because of affidavits and who have been referred for review Are Paisley consultant William Galvin and his companies and the Norden systems division of United technologies. Twelve other individuals or companies also Are on that list Howard  addition information pertaining to the follow ing 14 companies contained in the affidavits will be referred to the defense contract audit Agency for consideration to determine the propriety of any charges to government contracts for payments to consultants the Pentagon  Agency can disallow claims by the companies for expenses involving private consultants. The companies include Hazeltine Tel Edyne nor Den Goodyear aerospace the Northrop corp., Uniss and Westinghouse. A act Leader 13 lawmakers fined in Confederate Flag protest Montgomery Ala. A a judge on wednesday convicted Alabama a act president Thomas Reed and 13 Black legislators on a mis Demea nor trespassing charge in their protest against the con federate Battle Flag flying atop the state Capitol. Montgomery county District judge Craig Miller fined each defendant $100 plus court costs. The Maxi mum each could have received was three months in jail and a $500 Fine. The non jury trial marked by several delays ended last month but the judge did t Issue his verdict until wednesday. Miller s ruling came nearly a year after Reed at the time a member of the state House of representatives and the other legislators marched to Alabama s Capitol and tried to climb a Fence surrounding it in a symbolic Effort to remove the Flag from the Capitol dome. They never got into the Capitol grounds which have been closed off with a Fence during restoration work and the Flag continues to Fly on a staff with the Ameri can and state flags. I knew we did not violate any state Law. In fact dissuaded the people who were with me from breaking state Laws Reed said in a Telephone interview from his Tuskegee Home. I pleaded with them not to. We followed every command that was Given  Reed declined to comment on the Legal aspects of the Case but an Appeal is expected to be filed in circuit court where the group could request a jury trial. I will talk with my lawyers at the appropriate Tim about it he said. I m going to take direction from our  some of the defendants also have said a ruling against them would be appealed to circuit court. Reed was expelled from the House in november Thomas Reed up file when he was sentenced in an unrelated bribery  is free pending Appeal. The National association for the advancement of coloured people has filed suit in Federal court seeking to take Down the Flag which Black leaders have criticized As a Symbol of racism. On Friday . District judge Robert Varner refused to dismiss the suit. Pretrial conference is scheduled for next month. Stateside historic Palace hotel shut Down for renovation san Francisco a the Palace hotel where the great Caruso was spooked during the 1906 earthquake and where president Warren g. Harding died in 1923, has closed its doors for the second time in its 113-year history. The hotel which shut Down on monday will go through an 18-month, $60 million renovation that will leave the exterior untouched and re store much of its historic decor. The Only other time the Palace shut Down was in 1906, after the great earthquake and fire. One of the guests who fled from the Palace during the temblor was Tenor Enrico Caruso who was so upset he vowed never to return to san Francisco. Because of the hotel s 12-foot Brick Walls the original seven Story building survived the Earth quake but was gutted by the fire. The present eight Story building opened in 1909 with additions in 1915, 1919 and 1925. Executive leaves workers a present after his death los Angeles a Francis Sennott the head of tra Samerica financial services who died in october left his employees something to remember him by they re going to Hawaii next month. Sennott president and chief executive officer of tra Samerica financial services an Arm of the san Francisco based tra Samerica corp., arranged the trip for 400 employees before he died of pancreatic cancer. It was one of Many trips he had arranged Over the years As incentives for employees of the con Sumer finance company. I think the thing that he valued and enjoyed most was seeing his employees succeed. And in being Able to share the Success of his company with his employees said Thane Brothers a for Mer tra Samerica regional manager who worked with Sennott for 30 years. Officials inspecting Jet that Slid off wet runway Baton Rouge la. A a Continental airlines dc-9 that skidded off a runway was dragged out of knee deep mud and inspected tuesday officials said. The Jet carrying 58 passengers and a Crew of five ran off the runway at Baton Rouge metro Airport after Landing. The Airliner had been on a flight from Houston on monday. No one was injured and the plane apparently did not sustain any damage officials said. A Crew of workers flown in from Houston began working to free the plane before Dawn tuesday officials said. Airport spokesman Bill Profita said there apparently was no damage to the runway. Continental spokesman Bill Messing said the Accident was probably caused by a wet runway and an Airport official said there were no braking problems when flight 1083 touched Down. The runway is grooved to allow rain to Drain off the official said. Lesbian wins fight to re enlist in army Reserve Milwaukee a a Federal judge s ruling upholding a lesbian s right to re enlist in the army Reserve will have a widespread Impact her attorney says. . District judge Myron Gordon ruled tuesday that a regulation barring re enlistment of homosexuals violated Miriam Ben shalom s first amendment rights because it unreasonably chills the right to Freedom of  he said it also unfairly discriminates against people with a homosexual Orien tation whether they engage in homosexual activity or not. The decision will have an Impact allover the country in similar cases said Patrick Berigan who represented Ben shalom. He said the ruling would allow Ben shalom to retain her Post with the army s 5091st reception in and should help homosexuals preserve their rightful roles in the military. Ben shalom 40, a sergeant was Dis charged from the army Reserve in 1976 because of her homosexuality. After series of court actions she was reinstated in september 1987. But after refusing to let her re enlist Ina gust the army was found in contempt of court by Gordon in september. The army then allowed Ben shalom to re enlist pending the ruling Gordon made tuesday. Gordon said there was no evidence that Ben shalom engaged in homosexual acts. Although the army has a compel Ling interest in sexual issues the judge said the elimination of All soldiers with homosexual orientations from the ranks of the army is not rationally related to the advancement of any compelling government  Kenneth Kohl a . Justice depart ment attorney said the army probably would Appeal the ruling