New Jersey Nightly News; New Jersey Nightly News Episode from 02/28/1979 7:30 pm

New Jersey Nightly News. With Rebecca Sobel in Trenton and Clayton Vaughn in Newark. Good evening. In the news tonight oil companies bid on the second series of leases in the Baltimore Canyon. We'll have a report. And we'll take a closer look at why the companies were not enthusiastic this time around. Also not enthusiastic or New Jersey's bankers over the legislature's handling of the mortgage rate problem. A report on that as well. Quite. Good evening Rebecca. Also in West Milford The city councilman is threatened with recall after charging that racism is the basis for his town's dispute with Newark over development of watershed lands. And in sports Paul bloodline reports on a border town reformatory inmate who was allowed to box in the first round of the State Golden Gloves only to be barred from the later rounds. Many of the nation's biggest oil companies today passed up a chance to bid on oil and gas leases in the Baltimore Canyon off the New Jersey coast. And a government auction in New York. There were bids on only 44 of the one hundred nine ocean tracks being offered. Reggie Wells

reports. The biggest oil companies in the country were represented here today. But compared to a similar auction in 1976 the turnout was dismal. In 1976 the federal government held its first Baltimore Canyon auction and attracted 70 companies which totaled well over a billion dollars. However. Today's tape came nowhere near that figure. The Transco exploration company which supplies 75 percent of New Jersey's natural gas was one of today's big bidders. But they say the success rate in the Baltimore Canyon hasn't been the best. There's been some 10 10 holes drilled thus far. I believe that only one announcement of a significant find and obviously this is chilled in the interest of many companies. Your company was willing to take the chance at this point. Yes sir.

But New Jersey energy czar Joel Jacobson said some of the major oil and gas companies may be deliberately trying to scare prospective speculators from drilling in the canyon. Is there any possibility that some of the oil companies have had successes in the Baltimore Canyon and haven't reported it. There was a suspicion that this was taking place in charge had been made that some of the companies were not reporting significant fire because they did not want to build up the value of the lease sale that was taking place today. I must tell you that while the suspicion remains the companies themselves have vigorously denied it. What do you think. I suspected that there was some merit to the argument. Whatever the reason for the apparent lack of interest in the Baltimore canyon it is not because the oil companies don't have the money to spend. According to the oil and gas Journal net profits for the top 25 U.S. oil companies climb to a record $13 billion in profit last year alone and that's a 10 percent increase over 1977. In Manhattan I'm Ridgewell governor Burns says he's sympathetic to

President Carter's proposal for saving energy including the standby gas rationing powers the president wants from Congress. But Burns says if the states are going to be hit with mandatory energy saving measures then they should be allowed to specify details of those measures. For instance if gas stations have to close one day a week we'd like to pick that day. The details of how to get an energy saving proposal to work in a given state I think ought to be left in parts of the judgment of that state will give them results. But we would like to have some flexibility in how to implement an overall proposal. Byrne made those remarks yesterday at the National Governors Association meeting in Washington. The governor had said previously that he'd be against forcing New Jersey stations to be closed on Sundays claiming that would hurt the tourist industry. CLAYTON Well just New Jersey is tourism industry might be crippled by Sunday gas station closings. Another group of state businessmen say they face extinction if gas

is rationed. Reporter Jack connotate introduces us to one of them now legal Barbizon a very competitive business. He sells clothes sportswear and suits to many stores across the state to make those sales. He must drive and drive and drive. He logs more than 30000 miles a year on his leased car logging sample cases and selling his goods. The threat of gas rationing even weekend closings has Goldfarb a worried man. Outside it would be. Would be. The end of everything we've ever worked for. If we don't get our gas away and we just. Had trouble wiping out of. An entire segment of the population. Goldfarb says this kind of thing is the heart of the business. If you can't get to the stores he can sell and that could have a ripple effect affecting business and everyone from sales clerks to customers.

There are more than 2000 salesmen like Goldfarb in the state business man whose work depends on person to person contact and they feel their case is not being heard. People like Lee Goldfarb call the president contingency plans for gas rationing instant death for their livelihoods and they want federal officials to take notice. But the long term picture is bleak and with the gas shortage may really mean demand like Goldfarb. Is that the very structure of their business will change this method of selling will become a thing of the past and mailings and phone calls will be used instead. That won't please him or his fellow salesmen but it's beginning to look like the road ahead. On the Garden State Parkway. I'm Jack contadino. State officials are saying now that it could be three years until the construction begins on the Route 24 freeway between Chatham and interstate 287. Last year the state was saying construction could begin in 1980. However the start has been delayed by environmental and engineering studies. The project is also being opposed by some homeowners.

Now there are severe traffic problems on Route 24 as it winds its way through Chatham borough and Madison and on to Morristown and beyond. Rebecca. Earthquake experts said that earth earth shattering boom that rocked New Jersey on February 8th was caused by a Concorde supersonic jet liner. British Airways said it wasn't our jet that did it because that jet was flying below the speed of sound is it near the Jersey coast. Today the Federal Aviation Administration said you're both probably right. An FAA study confirmed that the Concorde was flying at subsonic speeds from Massachusetts south but it says a rare secondary sonic boom might have followed in the Jets wake and hit New Jersey several minutes later. Home mortgages may be impossible to get in New Jersey over the next few months. Reporter Mary Amoroso talked today with bankers and realtors and found them disappointed with the legislature's failure to raise mortgage rates. Be it ever so humble there's no place like home. But over the past few months in

New Jersey it's become harder and harder to buy even a humble abode let alone move into something more spacious. Savings and loan associations and state chartered banks have virtually stopped lending mortgage money because the state limit on interest. Nine and a half percent is unprofitable they say banks with the federal charter can charge 10 and a half percent. But since everybody is coming to them their money is rapidly drying up the cost of their money is now ten point two percent. And ten and a half percent against ten point two just about pennies likely Claypoole. So I would say we're very close to a situation. We're simply not working just anywhere and they will be we're virtually are now bankers to a certain extent have other option car and business loans even out-of-state ventures. But realtors say they're starting to feel the pinch. Well I would say since the beginning of the year things have tightened up. And then the mortgage money of course not being available. We have sold a few houses but it is getting

progressively worse. We're just now beginning to get into our building season which is spring. Now you're going to find the people who will be starting to look now are going to be the disappointed ones. The tightness of the money market is likely to have a domino effect. People may be unable to sell their homes to buy bigger ones. Home construction may fall off as Michelle has things like home furnishings air conditioning and appliances. Legislative leaders hope to return at the end of March to tackle the mortgage rate problem once more. But bankers say the ten and a half percent ceiling that lawmakers are proposing won't help much. My feeling is it's too little too late. In Trenton I'm Mary Amoruso. Authorities are investigating reports that patients at Marlborough psychiatric hospital can easily get drugs and alcohol. The report came out after a patient testified that liquor and drugs especially marijuana were readily available at Marlboro

Clayton Moore gentlemen fires in Jersey City last night and early today. The city's fire problems continue with one more case of suspected arson. Officials said a fire in this vacant five story tenement may have been set. A 2 year old girl was burned and hospitalized three families were forced to evacuate after a fire broke out here and other Jersey City then onto a three story building and a fireman was hurt. And seven families left homeless after a blaze in one tournament that quickly spread to still another next door after news reports on this broadcast and elsewhere this week. Jersey City evidently began a crackdown on slumlords today. A municipal court judge ordered worme tenement landlord to spend 10 days in jail after he refused to pay a $200 fine for failure to provide heat in his building and warrants were issued for seven other Jersey City's landlords in similar cases. A convicted sex offender from Ogdensburg has been sentenced to give to a trust fund to be used if the 7 year old girl victim in the case needs psychological counseling. The

trust fund will be maintained until the girl is twenty five years old. Thirty two year old Lonnie crane had been a babysitter for the girl. In addition to the trust fund contribution graine also drew a three to six year prison term that was suspended and a fifteen hundred dollar fine. He pleaded guilty to abusing the girl and impairing the morals of a minor. Rebecca Police say a 2 year old Elizabeth boy was abducted yesterday when the station wagon in which his mother had left him for a short time was stolen. Police say little Jerry are Peeno was later found on a sidewalk about a mile away. Officials say the child's mother had parked for a few minutes in front of the spring pharmacy in Elizabeth so she could pay a bill. Two hours later to Elizabeth policeman found the boy bundled in his brown and white snow suit after neighbor spotted him and called police. Authorities speculate that the thief didn't see the child in the backseat of the car when it was taken and by the way the blue station wagon is still missing as is the prediction. March will come in like a lion. But it's February that's going out like a lamb. Temperatures today reached into the

50s in many parts of the state and skies were clear the last day of February gave us more than just a hint of spring and spring fever. But tomorrow will again remind us of winter it will become cloudy later tonight. The overnight low temperatures will range from the mid 20s to me or 30. Then tomorrow the first day of March. Cloudy with rain possibly mixed with sleet or snow to the north. Highs during the day will be from the mid to upper 30s in the north and from the low to mid 40s in the south. And the outlook for Friday will have partly cloudy skies with mild temperatures. You trust me I'm just happy to be. On. I always knew you could.

Watch country numbers Thursday 9:00 on New Jersey public television. I think. Rutgers overcame a jinx last night. Here's Paul Budde live. Thank you Rebecca. You're right for two years in a row Rutgers had lost in the opening round of the Eastern 8 Tournament. But last night the tide turned. Playing at home the Scarlet Knights knocked off Penn State sixty seven to fifty seven thus earning a trip to tomorrow's semifinal round. Bill Perry reports Penn State came out and played it's deliberate offense and it was an offense with a purpose that the Lions wanted to get. Freshman Mike Edelman opened number 10 hit often enough six of seven in the first half and Penn State had a lead of 19 to 12. At one point picked up the other end James back when he was doing it as only 10 games. James was simply magnificent. Inside the big guy was unstoppable. If you're a James Barry fan you have to love this. James Wolgast seven of 11 from the field in the first half and he finished with twenty six point Rucker's emerged with a 33 to 30 we got to have his arm around her to jump from second with three point lead with Rucker's largest of the

half in the second half. The lights came out in his first six points stretch tonight crossing the fence harass the visitors into numerous turnovers but give Penn State some credit. They brought back the tide at 46 but it was not to be James babbly was there when ever Rutgers needed him. Finally the 67 to. The hockey game tomorrow night. We're now thinking about one day that's tomorrow night 8:00 Eastern 8:00 p.m.. OK. Pittsburgh civic arena it will be brought against West Virginia in that semifinal the winner of course goes on to Saturday night's championship game. Again it's Rutgers and West Virginia tomorrow night in Pittsburgh in an Eastern a semi at the Rutgers athletic center. I'm Bill Perry. Well it's not unusual to find athletes in the organizations that govern them coming into conflict. The recent Mike Rossman fiasco in Los Vegas is a perfect example. Now there's another conflict brewing right here in New Jersey this one between the state amateur athletic union and a prisoner.

For the past year. 24 year old Ricky Jefferson has been an inmate here at the Borden town reformatory. He's eligible for parole later this year. A professional boxer Jefferson decided to and received permission to enter the new jersey Golden Gloves tournament run by the Amateur Athletic Union. Two weeks ago in the first round Rickey Jefferson knocked out his opponent in 22 seconds of the first round. But last week when he showed up for the next round he was cold. Inmates are ineligible. That's an eight year rule. Naturally Jefferson was disappointed at first man. I'm sure everybody you know showed me how much you know they were willing to stand up for me. I knew who I was and Manning is disappointing. The EU's position is that inmates are not allowed to participate because first of all if we want a prisoner most likely could not travel out of state to the national tournaments and more than that Veolia you Executive Secretary Ray Hoagland maintains that inmates have an unfair advantage.

A boxer or a person in prison. Is in better shape or better condition than the youngsters that we use in the Golden Globes for the simple reason that they don't to carouse around or anything at night and they are in many cases former professional boxing. One major question is why was Rickey Jefferson allowed to box in the first round. Hoagland says that he didn't know Jefferson was an inmate until after his match after he was. One of the handlers from one of the other clubs came over to Mr. Livingston and said This man was an inmate in an institution. We then went and found out that he was. So last Friday when he came again Mr. barback was informed that the boy could not box but Rickey Jefferson maintained that the ADA You did know beforehand that he's a prisoner at Levick Union knew that you were an inmate before you for that first time. Yes sir. Well what would it mean to you if they let you go back in and get back into the Golden Gloves. I mean I mean is somebody you know cares enough to.

To back me up. I'd like to. And there is a chance that Rickey Jefferson will get back into the Golden Gloves. A meeting has been set up for tomorrow morning between A and state athletic commissioner Jersey Joe Walcott to discuss just that possibility and that sports. Rebecca. Thanks Paul. According to state senators graduating from a New Jersey high school is a hoax unless students can read and write. And according to the State Teacher's Union a bill to correct that problem is a hoax unless the state provides money for remedial programs. Both sides testified today in an assembly hearing on a bill that would require high school students to pass basic skills tests in reading writing and math before qualifying for a diploma. State education officials say remedial programs to help those students qualify could cost the state millions of dollars. The daily target Rutgers student newspaper goes back to press on Friday a week old strike by its editors reportedly over 12 students who work about 40 hours a week all the paper

want to get paid for their efforts. The university has now agreed to let an impartial committee rule on the dispute and the editors say they'll abide by its decision. Seven New Jersey men were indicted today by a federal grand jury on charges that they defrauded federal student grant and loan programs they allegedly made applications to a number of colleges around the state using phony names and got more than eighty six thousand dollars in grants and loans. Of course they never bothered to enroll for any classes. The small Passaic County town of West Milford has been fighting a plan by the city of Newark to develop part of Newark's aquatic watershed property about half of which is inside the West and over the city boundaries. West Milford insist that this is an environmental issue but now a councilman out there charges that his town's position is based on racism and that charge has led to a move to recall the councilman. SANDRA KING reports only 10 percent of this vast 64 square mile watershed would be developed

under the Newark plan and that over 30 years but the development would include light industry recreational facilities and most important housing here of that development has led West Milford to reject Newark's plans prompting Newark to file suit charging the town with exclusionary and discriminatory practices. Not so say West Milford activists but one councilman Richard Sambo's maintains the fear of blacks moving in is exactly what's behind at least part of the opposition. Just days after he said that to a newspaper reporter a movement was begun to remove Sambo's from office and despite the recall Sampras's is standing by that statement. It is a major concern. It's a concern of almost everybody I have talked to. Amongst the other concerns as far as water quality and quantity and the environmental impact and mass development Yes I think that's a major concern. I also feel we have to face the fact that it is a concern and what we can do this and we can

solve the problem. Leaders of the recall refuse to speak to us on camera calling it an in-house family feud. But the editor of The West Milford newspaper says the issue is bigger than that. Well freedom freedom of a man to speak out of freedom of speech. That's the one issue I feel. That's it. But the recall of Councilman Sam browes is only a side issue to the larger question. Should North be allowed to develop its watershed property that one won't be decided in editorials and petition drives and elections. The decision will be made in court and possibly before this year is out in West Milford. OK. This is on ash wednesday and the beginning of Lent. The Catholic Church here in Newark is urging its priests to emphasize in their reading of the London gospels that Jews are not to be blamed for Christ's suffering and death. Two priests active in Catholic Jewish relations sent a letter to their fellow priests with that reminder and a request that

priests explain the biblical references to the Jews do not refer to the totality of the Jewish people. And I do blame the Jews for Christ's death would not only be a grave injustice but contrary to its very meaning. On the last moment just the place for the opening. No. Everybody at work been talking about the show. If you keep talking about the. Are. Presenting a public television festival 17 are you saying special programs on festival Sunday night beginning March 3rd on New Jersey public television. Is the Baltimore Canyon oil boom or bust.

It certainly appears that the roulette wheel on the second most popular gambling venture along the New Jersey shore might be taking to a halt. This after today's auction of drilling sites in New York after all the oil companies elected to bid on only half the offshore tracks offered by the government and the bidders offered less than 5 percent of what they put up for the right to drill on the initial set of tracks off the New Jersey shore just two and a half years ago. These two men have some ideas on whether the game may really be up in the Baltimore Canyon and what the stakes out there really are. Dr. Les cook after a career with Exxon and other companies in the energy field is now a private consultant to companies on energy problems. And Tom O'Neil editor of New Jersey magazine is our regular commentator on energy and the environment. Mr. O'Neill Why were the bids so low today. Well there's almost as many explanations as that is there are explainers even including conspiracy theories among the oil companies. But the most frequent explanation is that the past lack of success in finding significant quantities of oil or gas out there has led to a loss of confidence on the part of the oil companies and they've reduced their bids accordingly. There are some other

factors there are there. There is truth to the lack of success but more important I think we have an example here of a new kind of bidding system being used on half the tracks a so-called sliding scale royalty system. And because the world will be higher if you find something under that system there is an incentive to bid less as your upfront money. And on top of that a lot of these tracks are in very deep water up to 2000 feet deep. And those are very expensive to drill in. And those are the very sites the deepwater sites that the companies think have the highest potential for producing anything. So the combination of all those factors is bound to end up with a lower set of bids and we had the last time around. Dr. Koch we've talked before about the significance of the Baltimore Canyon and I think it was a general view that it didn't really have much for the state of New Jersey but it does have some impact if the full potential is there on the world oil supply. Is it now.

Yes. The estimates that were made by the geological survey of what the oil might be found in the Baltimore Canyon judging from the geological structure. If there was any there amount to a boat enough to keep the US going totally for two months. Now that may not sound like a very large help to us in the future but we're going to need a lot of successful Baltimore canyons if we're to avoid some of the problems we're coming into one of those situations in which every little bit helps every little bit helps. What about the impact on New Jersey itself though. We were talking about all of these onshore facilities and related facilities that might somehow impact on the New Jersey economy. Do you see that now as a complete bust. Well of course it depends whether they find any oil. And I think the fact that the building today has been such a small scale is a clear indication that the large oil companies and their geologists are beginning to feel that the Baltimore Canyon either hasn't got any or if it does

that it doesn't have enough to make it worthwhile putting forth much more effort to find. And so I think it's a case as I mentioned before one shouldn't count one's chickens in this business before they're hatched put another way. You shouldn't figure you got oil until you've actually drilled and found. Mr. O'Neill we've been talking about oil and all of these cases but actually gas plays a very important part in the Baltimore can and in point of fact some of the larger bidders today weren't gas companies. How do you account for them. Well I think that the findings so far have been more favorable to guess than they have been to oil. One of the interesting things is that the high bidder I believe this time around was a consortium made up of two companies Tenneco and Transco both of which are major gas suppliers to New Jersey. They put up I think a little over six million dollars for one particular track that could have an impact on the state since they are directly serving New Jersey. And we might get if they find anything something out of that. But as Dr. Cook very accurately points out the

Baltimore Canyon is not the solution to a lot of our energy problems. And before we can count the chickens they they may come home to roost if we don't start a firm program of conservation. Mr. O'Neill Dr. Cook thank you very much for being with us today. Once again our top stories. Oil companies disappointed over the number of hits in the Baltimore Canyon today. They don't want a second set of oil leases but they offered less money for fewer drilling rights. Governor Vern's says he can accept a one day a week ban on gasoline sales if he can pick the day. A JERSEY CITY judge has thrown a tenement landlord in jail for allegedly not eating his building with warrants issued for seven other landlords. And that's the news tonight Clayton. Goodnight Rebecca. Good night for the New Jersey nightly. New. Jersey Nightly News is a joint presentation of New Jersey Public Television and W and 18:13 and is broadcast weeknights at 6:30 on Channel 13 and at

7:30 on New Jersey Public Television an updated edition is broadcast at 10:00 p.m. on New Jersey public television and at 7:00 the following morning on Channel 13. Portions pre recorded