Herald & lantern 1 {uwe '113

‘Friend’ Was No Friend to Kelly (From Page 1) .. . . _ Kelly, ‘there would not be a partnership the county seat, Lancaster, found three. today. I could never.have done it.without "Maybe she didn’t want it in her name . her help." because of her affiliation with the bank," \ Kelly said he asked Cape Equity's said Kelly. "I don't know." yi^ orne y*i nve8(or Louis C. Dwyer Jr “to IN A BRIEF telephone interview, Mrs. give her a piece of the partnership as a Goodpaster said that "technicaHy, yes,” consulting fee. He said, no problem.' 1 she operated M B. Friend out of the New asked every partner, all friends of mine, Holland bank. and nobody said 'drop it.’ ” Bank president John Barry indicated he . With the 10 anticipated partners being knew nothing about the consulting firm, expanded to II, Kelly said, it would have

although Mrs. Goodpaster apparently used its address as the address of M B. Friend. “I won’t discuss it unless I see the article," he said. Alice Mesa, consumer specialist for the U S comptroller of the Currency, which regulates' national banks, said no federal regulations prohibit a bank officer from outside consulting, "but in all likelihood, the bank wouldn’t allow it because it would be a conflict of interest." Barry said it'was "not necessarily" against his bank’s policy. "I laughed at the name when she suggested it," Kelly said, but I didn't ask her where she got it. "We are friendly," he added, "but we do not have a close relationship. Maybe she thinks I’m her best friend." KELLY SAID he first talked about Container Decorating to Mrs. ■ Goodpaster when she was visiting friends in Avalon in early November He described her as “a very, very bright lady, in the banking business for seven or eight years. She handles $6-7 million for bank customers." Stymied in his pwn efforts to locate private investors to help Container Decorating get started, he said he told her. If you can help me, I’d appreciate it. I can't pay you, but maybe somewhere down the line I can compensate you for your help ’ "She said, 'Don't worry, no problem, what are yoy looking for?’ ” Kelly recalled A half-dozen meetings followed between then and January. Kelly said, most of them at Goodpaster’s friend’s home in Avalon or over dinner Kelly said these were Mrs Goodpaster's main proposals •RAISE THE necessary $250,000 by get ting 10 persons with $25,00 apiece. •Reject the proposal of Container Decorating principals. William R Beiseigel and Jay Knox, to sell the'in vestors 49 percent of the stock. Beiseigel and Knox 48 percent and a bank escrow account three percent. "She said nobody will invest on that basis the local owners will have to have 52 percent to sell that package,' " Kelly said. •Look for local investors who would be involved in the company in their professional capacities: an attorney, an accountant, an insurance agent •Require a financial statement and letter of intent from each investor. •Have the investors form a general part nership and put the 48 percent management stock in an escrow account for five years with each principal signing a fiveyear contract. •Use a financial broker in Philadelphia to seek bank loans. "IF I HAD NOT used her advice," said Kelly Suspended for (From Page 1) * jected, according to Thornton Guhr, owner of Charles Guhr & Co. stationers in Wildwood, refused to talk to the Herald and Lantern. Neither the Freeholders, members of Cape Equity, nor the company’s management had ever met or talked to Mrs. Goodpaster, financial services manager of the New Holland Farmers’ National Bank Her recommendations were never made in writing, Kelly said, but came verbally in a half-dozen meetings between early November and late January THORNTON CALLED Kelly’s proposal "poor judgment It placed him in a conflict,” He also said Dwyer’s apparent approval of the proposal was "an eye-opener to me. I would think he would have questioned it He had an obligation to protect the pa« nership's interest " V "I didn't see anything inherently wrong," said Dwyer, who denied he was' Kelly's attorney. "I've done no legal work for him until the beginning of this year," he said, "and now I have one personal, confidential case "I was not asked to give a legal opinion,' Dwyer said. "A $25,000 consulting fee was not unrealistic to orchestrate a $1 millionproject — if there was actually any consulting." Dwyer is solicitor to the Zoning Adjust-

meant that each would have had 9.1 per cent and Mrs. Goodpaster, or M B Friend, nine percent. Nine percent of the $250,000 the partners were raising would have beenworth $22,500, “if you could sell it,” Kelly said. The partners also estimated annual dividends of $180,000 a year. Nine percent of their 52 per cent would have equaled $8,424.a year. But Kelly said the total dividend estimate was "outrageous; bank restrictions would have held it to more like $40,000 " In March, Kelly said. Cape Equity investors told him "they didn’t want to pay it (the consulting fee', so I said, 'no problem.' " "WE ANALYZED the fact that the con suiting firm, in our opinion, did not make a contribution to the organizational aspect sufficient to warrant renumeration of that nature,” said Dwyer. "It seemed to me we were having to spend the time ourselves, to locate the financing, to try to structure this thing We were going to local banks ourselves We were doing the work, so why pay somebody else?" Dwyer asked "There was nothing earth-shattering about the information we were given. There Was ho reason to pay 25 grand to somebody who may have given Don some original ideas.” Currently. Cape Equity has eight partners who put up $25,000 apiece for $200,000 Guhr. elected Container Decorating’s chairman of the board last week. Dwyer; Joseph W Barnes who owns a Wildwood amusement pier; Roy Gillian, owner of an Ocean City amusement pier ; Gust Kraras, a Wildwood motel owner; l>ouis Mazzarella, owner of a dry-cleaning business in Ocean City; A Keith Rasmussen, owner of a Wildwood shoe store, and Harry Scott, partner in Ford Scott & Associates, an Ocean City accounting firm. Guhr is also a Wildwood Crest borough commissioner Dwyer is solicitor for the Lower Township Zoning Board of Adjust ment. Gillian is a for pier county freeholder and a commissioner of the Municipal Utilities Authority Scott's firm is auditor for the county and for several of its municipalities. KELLY HAS BEEN treasurer of the county's Republican Party for about 12 years. "1 did not do anything wrong," he said in an interview prior to his suspension. "It was a request, not a demand, not a kickback. Nobody had any money to pay," Kelly maintained. "I've been here 12 years and my hands have been clean for 12 years. I've never sought a payment for anything I've done and I've never been offered anything. And in politics, if nobody offers you anything, they know you're clean.” Fee Attempt ment Board in Lower Township, where Thornton is Republican leader Dwyer also is a coordinator for Joseph Davis, who is opposing Thornton- and Republican organization-backed candidate Sam Stubbs for township committee. And Thornton foes in Lower last winter had suggested Dwyer as an alternative to Thornton in the leader post KELLY AND CATANOSO have been less than friendly for a halfdozcn years and Thornton took over economic development from Catanoso when the Freeholders reorganized in January "Tony wanted to fire Kelly," said Evans, "but I couldn't be that hard on the guy. You can’t definitely know anything, but 4'd have to believe there was something going on and, if there was, we don't want that kind of thing going on in county government It didn't materialize. J but it was in the pot to materialize " ^ Kelly's problems ironically came at a time that he is enjoying peak success in recruiting tenants for the industrial park "He has procured about eight companies to locate at the airport in the last six months," said Thornton "There is only one va cant industrial apartment. He lias been doing an exOellent job since January "But he made a mistake this time," add ed Thornton, "and he's being punished for it "

Set Primary Election (From Page'll Muziani of Wildwood and Joseph W. Chin nici are running unopposed for their Cape May-Cumberland seats as are their Democratio counterparts, Jeanne L. Gor man of Ocean City and Edward H Salmon of Millville. IN THE MUNICIPAL ELECTIONS: Two Republicans, Samuel M Stubbs of North Cape May and Joseph H Davis of Villas are running for the Lower Township Committee seat currently occupied by Democrat Peggie Bieberbach who is running unopposed. •Four Republicans — George Doerr of Beesleys Point, Milton Wood of Tuckahoe; Daniel Beyel of Marmora, &nd Loifls M DiLuzio of Tuckahoe — are bidding for two three-year terms on the Upper Township Committee and two GOP candidates are trying for the single two-year committee seat, John McDonough of Marmora and Ruth M. Millward of Palermo. No Democrats entered the Upper Township contests. i News^m« til

(From Page li is operated by one of the few remaining Rail rolling-lift bascule systems. Coldren's New Hat CAPE MAY — U S. Secretary of Transportation Elizabeth Dole has ap^ pointed Fred Coldren, this city's manager, to a national advisory committee on transportation Arthur Teele, Urban Mass Transportation Administration director, named Coldren chairman of the 15-member panel which has been charged with trying to improve the information used to determine mass transportatioan needs and federal assistance

Counting Plates COURT HOUSE — Despite the soggy weather, streams of out-of tate vehicles poured alortg the southbound lanes of the Garden State Parkway Friday night, lifting merchants' spirits that the Memorial Day weekend would not be a washout as the traditional start of the summer season For the most part, their hopes were not dashed Although outside ac tivities were curtailed, the wet weekend lured many of the early vacationers into resort restaurants and lounges where they found solace in companionship, a warm meal, etc

Tues.

•No Democrats have entered the race for three council seats in North Wildwood either Tl^ere. Tim O’Leary is running unopposedN^orv Councilman-at-large, An thony VisalnSod Robert F Plum are vy ing for the First Ward seat and Le^is G Vinci stands unopposed for the Second Ward post •No Democrats but three Republicans are battling for one council seat in Stone Harbor: Louis C Clelland, Kenneth J Hawk and Robert I Wilson •In Middle Township, Republican Pat Peterson of Rio Grande and Democrat James E Alexis of Court House are unopposed for Peterson’s scat on the townshipcommittee. •Republican John S Champion of South Dennis and Democrat John A Barry are unopposed for a township committee seat in Dennis Towaship while Republicaas Charles Payne and Jose Rodriquez stand unopposed for two Woodbine council seats No Democrats entered the Woodbine race

A ** A* * * < pleaded guilty to stabbing his wife in the back after domestic problems Pies Bargain No. 2 COURT HOUSE - Charged with six counts of arson and two of conspiracy, suspended Villas'Volunteer Fire Co Lt Daniel Schubert, 22. of Iowa Avenue was handed a five-year suspended sentence, placed on three years probation and ordered to pay a $25(1 fine in Superior Court last week According to the plea bargain, he was also ordered to undergo psychiatric evaluation, pay $225 to the Violent Crimes Compensation Board, and cooperate in the prosecution of three former volunteer firemen charged in connection with arsons in I^ower Township or arson conspiracies allegedly committed between December and mid-February

('.apt.: Ifhat Pot? CAMDEN - Pleading guilty to con spiracy to import marijuana. 19 Colum bian crewmen from the "Civonney.” a Honduran freighter which sank in March off Cape May Point with 117,000 pounds ($48 million worth i of marijuana aboard, were sentenced in federal court to fiveand six-month prison terms The American first mate of the freighter also pleaded guilty, but his sentence was deferred until June 24 The ship's American captain pleaded innocent.

Fire Fighting WILDWOOD — Attorney Louts Hornstine has been hired by the local NAACP chapter to fight the Wildwood Board of Education’s April 20 decision to fire two black educators. Charges of discrimination, including signed statements that racist remarks were made by board members before the vote, have been lodged by residents Some 2,500 of them signed a petition protesting the firings Hornstine has requested a federal injunction to block the board's action A hear ing on that request is scheduled June. 9. Heroic Effort OCEAN CITY - Edward Czwartacki. 24..of Pitman lost his life Thursday afternoon while he and two other men struggled in choppy water off Ninth Street try ing to rescue two Pennsylvania women held by the undertow. Patrolman Michael Mulroy saved Mattie Lapp. 17, while Mary Fisher, 47, was helped ashore by passers-by. Both women from Ronks, Pa., were admitted to Shore Memorial Hospital. Keith Davies of Bryn Mawr. Pa., who also tried to help the women, was treated for exposure and released. Plea Bargain No. I COURT HOUSE — Samuel Ocasio. 42, of Adams Avenue. Woodbine, will serve 10 years in prison for slabbing his wife, Doris, to death, Feb 3. Superior Court Judge James A O'Neill sentenced him to a 20-year ^erm last week, based on a plea bargain, but stipulated that Ocasio must serve at least half of that term before becoming eligible for parole Ocasio

Radiologists Sued COURT HOUSE - Burdette Tomlin Radiology, Dr Arleen Zabell and other physicians in the private firm which is under contract with Burdette Tomlin Memorial Hospital, are being sued by a woman who says that the firm's staff failed to detect a lung lesion on an x-ray during her annual checkup in April. 1981 Because of the oversight, she argues, cancer spread to other organs, the lung had to be removed and she was left disabled.

Riparian Change TRENTON — Under existing riparian law, the state must demand full market value from those who wish to gain clear titles to properties once washed by the tides That controversial statute is due for a change Opponents and supporters of the law have hammered out an agreement that surfaced in the state Assembly last week as a proposed constitutional amendment. If approved, it will allow transfers of riparian deeds for nominal fees.

Philosophy Job VILLAS — Lower Township Committee candidate Joseph Davis predicted in a campaign ad that former township com mitteeman Jack Moran would be-ap pointed as the next director of the county Veterans' Bureau If he is. it won't be because of political patronage, says county Republicaas Moran is one of four can didates for the job. Thornton said But Thornton sees his possible appointment as veteraas' director in keeping with his own philosophy of trying to promote county employes