European Stars and Stripes (Newspaper) - January 17, 1990, Darmstadt, Hesse                                Page 6 the stars and stripes 4 convicted in drug Case tied to Noriega Cash laundering Lafayette la. A four men were convicted tuesday in a major drug smuggling operation linked to deposed panamanian dictator Manuel Anto Nio Noriega but 16 co defendants in the 2 i month trial were found innocent. The defendants mostly boat captains and truck Drivers had been charged with conspiracy importation and distribution. Federal prosecutors said they smuggled 48.000 pounds of marijuana into North car Olina in 1982 and 280.000 pounds into Louisiana in 1983. They planned to smuggle 1 million pounds into mis Souri in 1984. Prosecutors said but were foiled by the arrest of ringleader Stephen Michael Kalish. Kalish testified As the Star prosecution witness that what he called the master blaster Load was to arrive a few Days before he was arrested. Kalish. Who said his drug smuggling organization operated from the late 1970s through 1984, is currently in prison stemming from a guilty plea entered in Tampa. Fla. In 1987 to a charge of continuing Crimi Nal Enterprise. Jerry Hughey of Austin. Texas Jim Swope of Texas and Max Wade no address available were found guilty on 16 counts. Steve Ellender of Houma la., was found guilty on six counts and innocent on seven others. The same investigation that led to the trial also led to Noriega s 1988 indictment in Tampa on drug charges. In his testimony Kalish said he had Given Noriega a $300,000 present for helping arrange a panamanian banking network to launder drug profits. He said the network he set up with Noriega laundered $50 million to $ 100 million a month for the my Dullin drug Cartel of Colombia. In november a Pilot who said he flew a private air plane for Kalish s drug operation said Noriega Sev eral times was a passenger aboard the plane. Kalish offered Noriega the plane when he needed it Jay Foreman . 27. Foreman said that after becoming involved in Kal ish s 9peration, he was Able to avoid customs inspections in Panama. Jurors had deliberated four full Days before tues Day s verdicts. Counts one through six in the indictment were conspiracy counts regarding the Possession importation and distribution of marijuana. Counts seven through 13 dealt with aiding and abetting of the importation and distribution. Hughey Swope and Wade were convicted on All of those counts plus three counts each dealing with wire fraud interstate Commerce and the illegal distribution of funds from the conspiracy. Ellender was found guilty on the first six counts. Up to 25 More defendants accused of higher level involvement in the ring Are scheduled for trial feb. 12. Campeau retail customers workers assured chains will remain open Cincinnati a Bloomingdale s and eight other retailing chains moved quickly to assure millions of customers and 100.000 employees nationwide they will stay open and Well stocked despite being under bankruptcy Protection. Please rest assured that we arc operating As usual new York based Abraham & Straus said in full Page newspaper advertise ments tuesday. While there May be cases where an advertised item is not  the and said the action taken by our Parent company is intended to help ensure that our customers needs Are fully met and that our company remains Strong and  Campeau corp. Sought bankruptcy Refuge from creditors Mon Day for its Federated department stores inc. And Allied stores corp., which arc based in Cincinnati and operate 260 stores in 28 states. The filing in . Bankruptcy court in Cincinnati under chapter 11 of the Federal bankruptcy Law was the largest by an american retailer and followed Only tax Aco inc s 1987 filing As the largest Ever by a non Bank ing company. Chapter 11 signifies a new  Blooming Dale s chairman Marvin s. Traub told employees Over an intercom in the Chain s new York flagship store. It provides us with a fresh Start and enables us to go  Carol Sanger a spokeswoman for Federated and Allied said there were no plans to Lay off employees. But she cautioned. We cannot be assured As we go Forward what form the reorganization will  one of bankruptcy judge j. Vincent aug or s first moves was to approve continued paychecks and Bene fits for the chains employees. The Federated and Allied stores would take Cost cutting measures. Sanger said but she declined to de scribe them. She also said Many suppliers contacted Federated and Allied after the filing to say they would resume shipments As soon As possible. One supplier jockey International said it would begin shipping hosiery underwear and sportswear As soon As the bankruptcy courts allow us to do  jockey International s main interest is to have our Robert Campeau products available to the custom ers of the Federated Allied stores president Howard c Woolcy said. The boards of Toronto based Campeau and the two . Divi Sions decided to seek bankruptcy Protection because of Campeau s inability to pay off $8 billion in debt much of it resulting from the $3.4 billion acquisition of Allied in 1986 and the $6.6 billion Pur Chase of Federated in 1988. The divisions estimated their assets at about $ 11.4 billion. Under chapter ii the Compa Nies gel a reprieve from creditors and can continue operating while re organi ing their finances. But the bankruptcy judge must approve All major company moves. Cd crated s stores arc Bloomingdale s of new York. Bur Dine s of Miami Rich s of Atlanta Abraham & Straus and Cincinnati based la Arus. Allied s stores arc the Bon March of Seattle Jordan Marsh of bos ton Maas Brothers of Tampa. Fla., and Stern s of Paramus . Campeau s Ralphs grocery co., which has 142 supermarkets in California was not included in the bankruptcy filing. Federated has put its 21-Story Cincinnati Headquarters on the Market and has been looking for a buyer for Bloomingdale s for weeks. Campeau sought Protection for its subsidiaries even though during the weekend they negotiated further Bank financing to cover their Cash needs and had obtained an Extension of the deadline to prove they were solvent and not in default on a $2.34 billion loan. On thursday Campeau s Board placed the . Retailing units under Independent trustees and directors. The move stripped founder Robert Campeau of control of the retailing operations but he continues to run Campeau corp s real estate and development interests. Also last week Campeau made a $100 million payment for merchandise shipped to its stores be tween thanksgiving and Christmas leading some observers to believe that chapter 11 was less Likely. Stateside Coors to begin sales of sparkling water drink Golden Colo. A for the first time since prohibition a division of Adolph Coors co. Is Selling a non alcoholic beverage. Coors Rocky Mountain sparkling water company officials said monday. The product goes on Sale this week in Colora do. Ari Ona and Northern California cities mainly in the san Francisco area Coors spokeswoman Heidi Buchler Nogues said. Bottled water is the fastest growing beverage category in America John Recca. Brand development manager said. Coors Rocky Mountain sparkling water will be packaged in 6.5-Ouncc. Six pack bottles and in 28-ounce bottles officials said. It will be Avail Able in original Lemon Lime and Cherry. In the past five years the bottled water marketplace has grown about 10 percent primarily because of consumer interest in health and fit Ness Coors said. Consumption of alcoholic beverages has declined. Plane returns to Airport after engine catches fire grand Junction Colo. A a fire broke out in an engine of an Aspen airways plane shortly after Takeoff monday but the plane returned to the Airport and made an Emer gency Landing without further incident officials said. None of the 26 passengers aboard was injured officials said. Details of the incident were sketchy and Aspen airways spokesmen at company head quarters in Denver could not be reached for comment. The air plane took off from Walker Field Here at 4 50 ., bound for Denver but the engine apparently caught fire about five minutes into the flight according to authorities. Officials said the Pilot Cut the engine and the aircraft landed under Power from the remaining engine about 5 10  The fire was out when the plane landed witnesses said. Firm begins publishing paper on space Industry Washington a a new four color weekly newspaper devoted to news about the business and politics of space began publishing monday after three months of putting out pre View editions. Space news edited by Theresa Foley is a publication of the times journal co. Of Spring Field a. The company also publishes the army times Navy times air Force times Federal times defense news and journal newspapers in suburban areas of Washington . Woman s suit says City encroached on airspace Salem Ore. A a woman is suing the City for allegedly violating the airspace above her property by building a five Story High pedestrian Bridge. In the Olden Days your property ran to the Center of the Earth up to the heavens said Michael martinis attorney for Ann b. While. Now it is interpreted to be the usable airspace above your  the lawsuit filed in Marion county circuit court demands that the City recognize her right to use and enjoy the space above her land. It seeks no monetary compensation except attorney fees. We want a judge to sort out everybody s rights martinis said. If the defendants recognize White s right the lawsuit would be dropped he said. The Walkway connects a garage to Capitol Center an office building owned by Salem historical associates a limited partnership based in California. The Bridge passes High above a Park ing area behind the Tahiti restaurant and lounge which White owns and leases. David Dmartino Deputy City attorney said he had not seen the complaint and could not comment. He could not recall the City previously being sued for violation of airspace