New Jersey Nightly News; New Jersey Nightly News Episode from 07/20/1981

From Trenton Here's Don Torrance. Good evening New Jersey and brace for the possibility of yet another strike this time the National Postal Service may grind to a halt. In sports the cosmos tie but lose Bill Curry We'll explain that. And tonight a closer look at the banker's lament. There's the possibility of a nationwide postal strike beginning at midnight tonight. That's when the postal workers contract expires. A negotiator in Washington haven't reported any progress in their talks aimed at avoiding the walkout. And with nearly three billion pieces of mail delivered in New Jersey every day there's no guarantee for the model's delivery. We have more on the story now from Reggie wells. According to the postman's motto neither snow nor rain nor heat or gloom of night stays these couriers from the swift completion of their appointed rounds. But a labor dispute is something else. Postal unions live by no contract no work policy and even if the skies are sunny tomorrow there may not be any mail delivery. 3 years ago the US Postal Service in an eleventh hour negotiating session averted a nationwide postal strike. But the handlers at the bulk mail center in Jersey City didn't like the contract and staged a

wildcat strike anyway. Jersey City is the largest postal facility in the country employs 5000 people and is a clearinghouse for all mail bound for Europe and officials are worried about what might happen here. Authorities insist that strikes by federal employees are illegal and they say any postal worker who strikes will be prosecuted. Postal employees earn a starting salary of fourteen thousand five hundred dollars a year and one a 17 percent increase. The government has asked them to accept a cost of living raise with no increase in salary. Postal unions in New Jersey say they're now waiting for word from Washington. Now we don't know well that's right. We don't condone strikes per se but what we're interested in is if we're honest. We have a whole arsenal for the national officers and we know they're going to give us a contract something we can live with and if there's any enemy to blame Lysol we deposed

in the event of a strike the Postal Service has announced plans to call in the National Guard to sort and deliver mail. But many business leaders say they don't trust that plan. PFC Energy the state's largest utility sends out 95000 bills a day and received nearly eight and a half million dollars a day in checks if the strike lasts more than three days the company says it plans to use meter readers to hand-deliver bills. New Jersey bell and many banks say they have similar plans. Many other companies also have the same idea. Federal Express Service seventeen thousand cities in the United States and company officials reported a surge in business this afternoon. Negotiators are now meeting in Washington. And no matter what kind of settlement is finally reached someone has to pay and most experts say the 18 cent stamp is soon going to be out of style in Newark. I'm read Wells. And there's late word out of Washington the Postal Service has reportedly made a new wage offer to the unions but no more details are available. Now wage freeze might be the least of the worries for

600 employees of the state department of labor and industry it looks as though they will be out of jobs just after of all days Labor Day federal budget cuts are being blamed money from Washington accounted for 80 percent of the department's operations. Most state departments have hiring freezes to contend with because of the budget problems. The latest for us is in the Department of Human Services where Commissioner Timothy Cardin wants to pare down his 20000 employees through attrition before any layoffs are imposed. Parts of New York's ruptured water supply lines were back in service today just two weeks after an alleged act of vandalism knocked them out. But as Sandra King reports strict conservation measures remain in effect as final repairs continue. It's been nearly two days since water started flowing through both these pipelines and despite an earlier failure the lines are holding but officials aren't taking any chances. So the pressure is being gradually raised and carefully watched by today. Fifty five million gallons were moving through the aqueduct. That's about two thirds of capacity so New York is still buying water from other authorities as depleted holding areas are

gradually replenished. But it's all good news for New Jersey's largest city which initially had placed repaired time at up to two months. The accelerated pace means savings of a million dollars appropriated for emergency water purchased only $150000 has been spent. It also means less cost for construction that's been going on around the clock. But water is running through those pipes when everything is not back to normal yet we're building up the flow gradually we didn't want to put undue strain on these two repaired pipelines. And so we hope that water will be flowing at full strength by the end of this week. But there are still lots to do. Now that the pipes are in there's the water vault to be rebuilt. The concrete and metal structure that holds the vital relief valve. It was the turning of that valve that finally caused the rupture. And for young chronic men face charges for malicious damage. But this time officials say the vault and the valve will be vandal proof.

Meanwhile water remains a precious commodity here in New York but there are no serious shortages in the state of emergency declared almost two weeks ago when those pipelines burst should be lifted by next week. In your time some drinking. Settlement was reached today in that lawsuit against Essex County Hospital Center in Cedar Grove the state's largest psychiatric facility. The hospital will be vastly improved under the agreement according to presiding federal Judge Robert Stern who also called for reaching under the settlement there will be increased staffing of the hospital prompt investigation of allegations of patient patient abuse and greater privacy for the patients. The State Public Advocate had sued the hospital a year ago on behalf of patients who said they were being mistreated. The state of New Jersey is now in the urban salvation business. Governor burns on the bill today that allows the state to control the municipal operations of Camden. Until that city regains its financial footing Byrne called the new reform legislation that he thinks will set a precedent for state help to cities though the new law is designed specifically for Camden the state could apply to any city in financial trouble.

Part of the help Camden will get comes because of its willingness to provide a cite for a new state prison. In the meantime sheriffs from the state's 21 counties think their jails are a ticking time bomb that's been set by Governor Byrne. The sheriff held a statehouse news conference today to denounce the governor for doing nothing to relieve the overcrowding in their jails. There is a virtual moratorium on transfers of county prisoners to state penitentiaries that led Passaic County Sheriff Edward Engle hard to predict the jails could explode any day. His jail is designed for 200 prisoners but has 400 60 of those should be in state prisons. State Corrections Commissioner William Farber said while he sympathizes with county officials were all in the same boat. A state fire commission today met for the first time to discuss ways to make boarding homes and other places less vulnerable to fires. Jim McQueen has that story. Fire is in boarding homes for the elderly or infirm have killed 63 persons within the past year. That's what spurred creation of the state fire safety study commission which met today for the

first time members indicated they would work quickly to recommend to the legislature ways to better protect buildings from fire. It's obvious they said the present fire protection laws need to be overhauled. We don't have a uniform five intention code in this state so I mean it's a Pallies have no code. Some have actual ones on the mediocre ones in those places where people cannot take care of themselves talking about nursing home and places where we have mentally retarded people or handicapped there has been more built in fire protection. And we've had in the past we need sprinklers we need a day and a lawn hooked up directly to the local fire department and also to sound locally in that building. Even recent revisions need to be followed up call field said Department of Community Affairs officials today acknowledged for instance only about 10 percent of the apartments and hotels are complying with an eight month old law requiring proper smoke detectors and fire alarms. That's a sad state of affairs. Obviously depriving community affairs as not have enough inspected only has from 30 inspectors not nearly enough to do the job.

If it's going to be done well then I had to give that authority to the local fire department. Yet another potential area of improvement involves local fire departments and their own coordinated method of compiling fire statistics which could prove helpful in preventing more fires. One solution the commission may propose is creating a statewide fire marshal's office to do that job in Trenton. I'm Jim a queen and it's play time for Atlantic City's eight legal casino the 150 million dollar Claridge Hotel and its high ho casino open this afternoon but it's all for fun and for practice fun for patrons who can play cards and dice with play money and practice for the new casinos employees whose technique is being scrutinized by the state to see no control commission. The opening was delayed in part because the state forced the Del Webb Corporation a part owner to give up its interest. Del Webb is on trial in Nevada in connection with properties out west. If all goes well with a play gambling real money gambling could start Wednesday or Thursday. The supply of low income housing in Atlantic City has shrunk as casino development and land

prices have increased. The poor say that situation was just aggravated by a recent zoning decision. The low income inlet section and by the failure of the casinos to commit funds to housing. Now it's turned into a classic battle between the haves and the have nots and reporter Dan Hobson has an update. This six block area is one of a diminishing number of prime residential sites for Atlantic City's low income population. It's part of the South and looked last week it was rezoned to allow condominiums and commercial use area residents see the decision as another example of the city's insensitivity to their housing needs. I mean they're really trying to run us out of this neighborhood. We really are not good enough for no service no kind of service from the from the city here. The South inlet includes a large Spanish speaking population. But the city admits that none of the currently planned low income housing projects will be in the south in that area. A fact that could eventually mean a major disruption in the neighborhood sense of community. There is housing. There will be other housing in the area of the land city

and I would go wherever there is a housing. And it's also you know the people left. However of course as the city is not writing off the low income residents the city plans to build sixteen hundred new low income housing units in the next two years. But Cole admits more than twice that many are needed right now. He's one of many who feel much of the problem could be eased if the casinos were fulfill their promise to help provide low income housing. I do feel that there should be a will demand the casino honor their commitment insofar as low income housing is concerned. So far the Latin organization of Atlantic City an outspoken advocate of low income housing needs has reserved comment on the recent zoning decision. The Casino Control Commission is expected to hold a public hearing this week to look into charges that the casinos haven't been meeting their community

obligations. The Latin organization hopes to buy a site to build its own low income housing project. They are apparently hoping the hearing will convince the casinos to provide some of the needed funding for that project. In Atlantic City. I'm Dan Hudson. Barbara Curran can stay on the State Board of Public Utilities the state supreme court says she can the court voted 6 to nothing today the Kerns appointment to the board is legal opponents that challenge the appointment because Curran served in the state legislature during a term in which the salaries of BPU commissioners were raised. Kern resigned from the legislature just days before the salary race passed but the New Jersey Public Interest Research Group insisted she was still covered by a constitutional prohibition. Well today the court disagreed. And now here's a look at our weather forecast and I will be mostly cloudy and warm and humid with scattered showers and thunderstorms. The temperatures will be in the low to mid 70s and tomorrow should be partly sunny and less humid with highs in the mid 80s the outlook for Wednesday sunny less humid. And now he's gone heading Bergen Newark with tonight's closer look Gus.

What to do with your money is a concern for those who have a little extra. One popular choice in recent years has been to invest it in money market funds which pay high interest. These funds provided by the securities industry have grown from 6 billion to one hundred and twenty billion dollars in the past seven years. Robert Peacock is chairman of the New Jersey Bankers Association and president of the Ramaphosa bank in Wayne taking a somewhat different view as Marty Gordon vice president and director of research of the Dreyfus Corporation which operates one of the largest money market funds out of New York City. Mr. Graham first of all define for us quickly what is a money market fund and how what's the minimum investment you can make and what kinds of interest you pay. You said briefly free money market fund is a basically a money market fund is an open end mutual fund and its purpose is to invest in high yielding short term securities. Usually U.S. Treasury bills or U.S. government securities could be commercial paper tigers acceptances items of that nature none of which can exceed one year in the maturity of that

instrument so you can't go out it's essentially a short term instrument has to stay in a short term short term basis. The yields that are offered by those funds at the present time running a bond 17 percent. Now Mr. Peacocke How does that kind of yield compare with what you can do in a normal commercial bank. While a normal commercial bank we are restricted by what is known as regulation chill which restricts the interest we can pay on passbook accounts also restricts the interest we can pan certificates of deposit up to $100000. Beyond $100000 we have an open market. It would appear that the regulator was so discriminating against the banks is that your position. Yes there's no question about it they're not discriminating against the banks I think they're discriminating discriminating against the small wage earner of this country and in particular New Jersey of the senior citizen with a very fixed income operating under that basis. These people are not sophisticated enough in financial instruments to really invest in money market funds.

I think you know if I'm honest enough to say what sophistication is required that would really has to hasten the required to invest in money market funds much like opening a bank account in fact the interesting point about it is exactly was the peak of mention and incidentally who we're in favor of the deregulation I think that is a something the banks should be allowed to compete on that basis. But it is exactly the fact that only large investors who were able to come up with $100000 could participate in that higher open ended yield that was offered that was on loan bank she was offered by the banks that what happens is the open and mutual fund the money market fund. Can and does go out and buy exactly that high yielding instrument at that huge denomination and offers an opportunity a small investor who can participate in a money market fund for as little as a thousand dollars if he puts his money you know she puts that money in through a broker or dealer. Or twenty five hundred dollars. If they invest it directly themselves so the is as I said when I said last occasion I really mean that the average person is not really used to dealing with a brokerage house. This is an interest and a sophisticated investor that deals with the brokerage house and I think

that most of the funds money market funds require rather large denominations to be invested you know a lot of hardship. Well what do you mean by well by like the average. Mr Gordon said it was a thousand dollars I think most of the funds require more than a thousand dollars to get into there. But there are vital dollars twenty five hundred I can relate and the minimum get the charge has been made and you've even alluded to this in public statements that you've made. Mr. Peacocke that savers in New Jersey who have been using banks have been taking money out of the banks to buy the high yield money market funds and that has hurt the capability to loan money for housing and the rest of it is that they do make their home and watch out about this. The amount of money taken out of the state of New Jersey at the present time is in the area of 6 to 8 billion dollars. This money is invested for a great portion of this money is being invested by the money market funds. If it gets a deposit and a

number or a good number of foreign banks this is where this money's going. It is not coming back to the state of New Jersey and several are going to say foreign. Let's be clear. Do you mean Saudi Aramco yesterday well I can see that there's a number of CDs being issued by foreign banks to money market funds at the present time. The average money market fund does not buy a certificate of deposit issued by a foreign bank it will buy and does buy on occasions a ticket a deposit issued by a London branch of an American bank. What you're buying is a CD that is actually issued by a U.S. bank what the domiciled comes out of London and of course what you have to be very careful of it but it doesn't you get the money. But if a New Jersey investor and a band of commercial bank buys a money market fund that money is flowing out of the state though as I don't have it right but there's another point to be considered in there because the banks are creating in a very real sense their own problem. I mean the latest figures for example just before I walked over your latest figure that has been coming out and it is available

now is it the money funds are about one hundred thirty three billion dollars. Now let's keep that one figure in mind money markets the tific it's issued by the banks themselves these very same stiffens we're talking about where they can go above the rate they key into this six month Treasury bill total close to 500 billion dollars. Now that's about four times the size of the money market fund. What has actually happened is that a great deal of the money in the banks has gone as Mr. Peacocke says quite directly out of the passbook deposit but it's gone into the money markets a difficult issue by that bank itself. There's been a transfer with in the banking system not totally just like a money market fund like the money markets have a short time span so to we one quick question if you can give me almost a quick answer to it. Do we have the capability with a New Jersey for people to invest in money market funds or is that capability basically based in New York money market funds are either out of New York or Valley Forge Pennsylvania or there are to my knowledge of not much in New Jersey and very little in New Jersey OK I hate to say this.

I don't have any money to invest but we're out of time as well as my thanks to both of you for joining us. And back to you Don. Thank you Gus Bill Perry one of the cosmos horseracing boxing and a summer national drags all that when we return. Here's Bill with his full force then you will take it away. Thank you down no appetizer I'll get right to the main

course because most tired but lost last night I guess that requires an explanation in the transatlantic Challenge Cup tournament. It was Seattle in the cosmos for the title forty seven thousand at Giants Stadium both teams were to win or going in but because Seattle scored more goals in their two wins than had the cosmos five for Seattle four for the Cosmos the most needed an outright win to capture the cup the penalty shot for Giorgio made it one to nothing in the first half Seattle argued offsides and can now you beat old friend Jack Brandon It was a 1 to nothing match at the half that score coming with just one 16 left and in the second half just three minutes in off the end to end dash 2 Well cosmos Romero to Van der Elst Francoise gives it up to Bogey who leaves it for Romero back to the cutting van that is pretty. Seattle came back five minutes later they cut the Kosmos lead in half off the corner kick watch this two headers in the second one's going to go in by Kevin Bond. 2 to 1. Just six minutes later after the foul by Darian in front scored again.

This time Seattle got the penalty shot been converted and it was all even at 2. And Seattle scored a third unanswered goal to take the lead seven minutes away to 3 2 still 24 minutes to play in the match Steve Dabney the goal getter. The cosmos then pressed the attack knowing they needed two goals. They only got one for the three three time. Now you're with the assist. With 15 minutes left so Seattle wins the Cup by virtue of the time and more total goals Michael Spinks landed more total punches and he is the new WBA heavyweight champion Spinks decision for Mohammad Saturday in Las Vegas and Mustafa returns to Gutenburg New Jersey with an ugly right eye and without his title only one knockdown in the fight here in the 12th round a big right hand by Spinks. Eddie was barely able to make that count. They'll get up at 9 you'll see it again Mohamed had trouble making the 175 pound weight limit for the fight he had a sweat off almost two pounds Saturday morning just hours before the fight that really had to hurt him and so did that right a couple of months ago Mohammad was over 200 pounds as he tried to move up into the heavyweight ranks he lost the heavyweight fight.

Now he has lost the white heavyweight title but says he wants a rematch too. Big Horse races in the state over the weekend harness racing and thoroughbreds first the Meadowlands pace. 12 moving nicely ready to go for that one million dollar jackpot. Here they come. Yes it was the million dollar Meadowlands pace at the big game Friday night and conquer made the big move to when it's coming from a tenth to first 20 in the stretch. Going off by three lines says Seahawk. He's all alone in mid stretch. Seahawk kind of is counted by far and they're spread across the track trying to take the second spot. Now calming is conquered conquered the schools in hand conquered common with computer its kind Kurt conquered with the favorite computer second and Seahawk Hanover third and Saturday night at The Atlantic City Race Course that was the $150000 Playboy Jersey Derby the three year olds there hadn't been a jersey derby since 1977 and there was a minor. Angst

on my. Cock she was going out I just don't experience along the way oh my god. I don't. Think I'm. Going to. Recite in some expressed her that it was our work on a shampoo. And we drop back to Mr Tawny and bare knuckles trailing the radio and more racing in New Jersey of a different variety. Dan reports on the Summer Nationals which wrapped up yesterday at a park in an English town. It's hot it's humid and rest of the time it's deafening. But that doesn't matter to these people who turn out to be a part of the premier drag racing event on the East Coast. The Summer Nationals. The elimination of racing started by noon as each driver entertained the hope of reaching the final run and it was surprises along the way and in Top Fuel category balance in the final round the last five years was eliminated. Semi. GARY

BRACK. Ran a quarter mile and five point seventy four seconds to meet top time back then went on to beat more cars Wald in the finals. Winning a 6 0 2 at two hundred twenty one miles per hour. In the funny part of Asia Don snake route home sailed into the finals with a win over Kenny Burns stayed in the Budweiser King. Then in the finals the snake piloted his Pepsi challenger to his second straight summer national title PBL Armstrong a speed racer with a 6 0 7 second run at two hundred forty one miles per hour. And in the Pro Stock division title is Frank I Canio one of the few Jersey drivers used to home track advantage and a little luck. In the finals. Canio raced to victory when the top qualifier Leif shepherd took off too early and was disqualified at the Summer Nationals. I've got scandal. And football cuts today the Giants got two roster players from last year a couple guys named Nate Nate rivers and Johnson. Ray said Get outta here. You're out he had said and I will tell you all the

caps to try to write earlier. Thanks Bill once again our top story tonight a nationwide postal strike may may begin at midnight. Many New Jersey businesses are making contingency plans to deliver their own mail. Six hundred employees of the state's department of labor and industry will lose their jobs later this summer. Federal budget cuts are being blamed there and final repairs are being made to New York's water system damaged by vandals two weeks ago. And that's the news for Bill Perry andan Torrence Good night from all of us here at New Jersey nightly news. New Jersey has a joint presentation of New Jersey Public Television and

13. The program is broadcast on weeknights at 6:30 p.m. on Channel 13 and 7:30 p.m. on the New Jersey Public Television. The people I cast at 10:00 p.m. the New Jersey public television and at 7:00 the following morning on Channel 13 portions according.