European Stars and Stripes (Newspaper) - August 16, 1990, Darmstadt, Hesse Page 4 a a the stars and stripes thursday August 16,1990 airlines delay fare hikes by the associated press several airlines arc delaying for about a week a scheduled 5.3 percent fare increase that the carriers proposed to defray the rising Cost of Jet fuel. At the same time major airlines moved to match fare cuts that Twa and Eastern airlines proposed earlier this week for flights after labor Day. The 5.3 percent Tare increases were to have gone into effect wednesday. United and Northwest airlines said tuesday however that they were delaying the Rise until aug. 22, and american airlines postponed it until aug. 23. They said that they were taking the action for competitive reasons and that the delay meant they would absorb higher fuel costs for now. The fare increases Yvere announced in the Wake of iraqis aug. 2 invasion of Kuwait which drove Oil prices higher. American airlines for instance said each Penny a gallon Rise in the Price of fuel costs the airline $25 million a year. United estimated its costs go up $22.5 million a year under similar conditions. Northwest airlines spokesman Bob Gibbons said his company a Jet fuel costs climbed 8 cents a gallon to 74 cents in 48 hours following the invasion. In another development tuesday United Northwest and american offered lower fares in response to the Post labor Day fare cuts announced monday by Twa and Eastern airlines. United said it would match the Twa and Eastern fare cuts american pledged to match the Twa fares and Northwest announced a reduction plan that it said a a parallels Price reductions at Twa. Eastern has said it will introduce discount one Way fares ranging from $69 to $139 and cover All of its 62 . Destinations from sept. 5 through dec. 16, the tickets must be bought by aug. 29. Twa has announced that it will Cut non refundable Domestic fares in most markets at least 20 percent under similar conditions. Meanwhile transportation Secretary Samuel Skinner said tuesday that he planned talks with airline executives this week to see How the department of transportation could help them Deal with High fuel prices. He said he docs not know what form the help might take a but i think we can do a Skinner made the remarks after a tour of the Boeing commercial jetliner factory in Renton Wash. 1% a v. Fire devastation i Bis is All dial was left late tuesday of a ranch House the Blaze that swept through the 115,000-acre Campbell and pc 11 ides caught in the path of a lire Southeast of red Complex. That and 10 other Northern California fires Bluff Calif. Many other structures were destroyed in were being brought under control wednesday Boycott by Gays Raleigh . Apr supporters of sen. Jesse Helms have filed a complaint with the Federal election commission Over a Boycott of Philip Morris products by Gay rights groups. The complaint filed by an Independent group called re elect Jesse Helms said homosexual groups Are acting As a political action committee in boycotting Marlboro cigarettes and Miller Beer both made by Philip Morris inc. The Boycott was called because Philip Morris political action committee has contributed to Helms re a Lection Campaign. A while economic Boycotts May be considered lawful As a Means of political protest newspaper articles submitted with the complaint leave no doubt that the True purpose and intent of defendants activities extend beyond acts of protest to the defeat of senator Jesse Helms for re election a says the complaint filed last week. Because none of the groups Are registered As political committees efforts promoting the Boycott amount to an improper spending of funds to influence an election the complaint alleges ,. The complaint names act up District of Columbia and act up san Francisco which arc aids activist groups with Gay rights components As Well As the Dallas Gay tavern Guild the Dallas Gay Alliance and the Tarrant county Texas Gay Alliance. Kate Raphael a member of act up san Francisco who helped organize the Boycotts said the group was assured by its attorneys that the Boycotts comply with Federal elections Laws. A a we be been assured that what we re doing is most certainly permissible with the Fec a Raphael said a what it does make Clear is that this action is having the desired effect Quot by hurting Helms Campaign. Helms angered Gay activists this year by criticizing National endowment of the arts Grants Lor a Robert Mapplethorpe photography exhibit. Helms has also been a vocal critic of any Federal spending on aids education that might condone or promote accuses Neil Bush of misplaced ethics. Washing Ion apr a government witness in the conflict of interest Case against Neil Bush says the president s son lost his ethical moorings a but did not try to deceit e anyone a while a director of a Denver sums and loan. In Lesli Mony released tuesday by the Federal office of Thrift supervision University of c Colorado professor Edward a corny wrote that the 35-year-old Bush did not lie try to conceal or mislead. Suit Bush a conduct was unethical because he Quot placed himself in situations where his self interest or loyalty to others was in Competition with the interests of depositors shareholders insurers and taxpayers a wrote to onry a professor of business Law and ethics. Quot he became ethically myopic unaware that his perspective or conduct were biased Quot he said. Bush was a director of Silverado banking. Savings and l Oan association of Denver which collapsed in december p a Cost to taxpayers of $1 billion. Corny was one of several expert witnesses on both sides whose testimony was released by ots and Bush s attorney James Nesland. The testimony was submitted to administrative Law judge Daniel j. David son As part of the proceedings in the Bush Case. Bush has been ordered to appear at a Public hearing on sept 25 in Denver before Davidson who will then make a recommendation to ots director Timothy Ryan. In documents submitted by Bush two experts disputed the regulators Contention that Bush failed to adequately disclose to Silverado his business relationships with Kenneth a Good and Bill a Walters two big borrowers from the Thrift institution. Bush has denied any wrongdoing. �?o1 have never observed charges of unsafe or unsound practices As insubstantial As the charges filed against wrote Charles m. Pickett a former attorney for the Federal Deposit insurance corp. Quot in my opinion Bush s actions underly ing the charges against him Are not unsafe or unsound practices.�?T1 the of s also submitted statements by several former Silverado directors that they were not informed of Bush s precise relationships with Good and waiters. In another document made Public tuesday the ots asked Davidson to authorize subpoenas for former Silverado chairman Michael Wise and Russell m. Murray a former loan officer at the Thrift. The Thrift office noted that Wise has announced his intention to refuse to testify by asserting his 5th amendment right against self incrimination. However the office said it believes Wise a assertion of that right is invalid. In addition to the Thrift Agency Scase the Odic is considering filing a negligence lawsuit against Bush and other Silverado directors. Pickett and Geoffrey c. Hazard jr., a professor at Yale Law school supported Bush a Contention that it was not a breach of his duly to vote As a director on Silverado Loans to Good and Walters since he did t have a financial interest in the developers projects. Good and Walters invested millions of dollars in Bush soil partnership Job exploration co., which drilled a number of dry holes in Wyoming Over two years and never became profitable. Bush has asserted that before he joined the Silverado Board he disclosed his relationships with Good and Walters to w ise other Silverado managers the Board of directors and the thrifts attorneys. Good and Walters two of Silverado a biggest borrowers got a combined total of $117 million in Loans that they never repaid
