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By JOE ZELNIK SWAINTON — Stone Harbor Realtor William J. Diller Jr. is the apparent successful bidder for the near-bankrupt 76 House Dinner Theater Diller offered a bid of $845,000 in Federal Bankruptcy Court, Camden, Friday. He declined to explain whether he was acting as a principal or in behalf of a client. "It's not final for 10 days," said Diller. "I'm not at liberty to divulge anything until its finalized." DILLER TOPPED an earlier $730,000 bid by the Holy Redeemer Visiting Nurse

and Home Health Agency, which has its offices at the rear of the 76 House. The agency is on Brooks Avenue, the restaurant on Route 9. But sources indicated Diller, or the people he represents, iqay take the 76 House liquor license elsewhere and negotiate with the Holy Redeemer agency for the ^ Philadelphia attorney Linda A. Galante. who represents the Sisters, said Diller 's attorney indicated "he's willing to talk to the sisters. "We don't want the liquor license." she THE HOLY REDEEMER bid allowed

$130,000 tor the liquor license, which left a $600,000 price for the property. Diller's bid reportedly aUowed $250,000 for the liquor license, which would mean $595,000 for the property. Sources said $250,000 for a liquor license was not an unreasonable price "for a restaurant on the water somewhere, like in Stone Harbor or Avalon." The Agency, whose mother house is in Philadelphia, would renovate the 76 House into an office building for its staff, according to Wayne Whelan. administrator. He said it has grown from a five-person (Page 20 Please)

. 1 Ik. - ... u . • WHEEE! — Mike Ciauso seems to be enjoying a plunge headfirst through a tunnel at Oceas Academy's new playground in Crest Havea. Mike is the 9-year-old son of Mr. and Mrs. Thomas Ciauso of North Wildwood. Other pictures, page 56.

News-^ Digest TbpTstories Sive It! • i CAPE MAY — City Council adopted a voluntary recycling ordinance Monday night establishing a resource separation and collection program for residential sites. Summer schedule will start June 6 for paper, glass and aluminum. Complete schedule will appear in next week's Herald and Lantern. yes, No, Maybe COURT HOUSE - Cape May County Planning CommissfDn voted 5-1 last week to oppose the bottle bill ( mandator) deposit to encourage returns and 1 discourage littering) in the state Legislature. Then it voted 5-1 to support a bottle bill if.it covered all beverage con tamers. Alice Belanger voted 1'no" on the first go-round; William Laskey voted "no" on the second. r A Road Is a Road DENNISVILLE — Dennis Township Mayor Frank L. Murphy last week asked county freeholders to support his efforts to dissuade trash trucks bound for the new MUA landfill from driving through historic Dennis ville. Told to consider an ordinance limiting vehicle weight. Murphy commented, "They're gonna scream." "Those trucks have to go somewhere," said Freeholder Ralph Evans. "Any route as long as they don't come through Dennisville," said Murphy. Only Took a Year WILDWOOD - Marc Pfeiffer, 29. businessr^jdministrator for* Washington Township, Bergen County, is Mayor Earl Ostrander's second nominee for the $40,000-a-year post of Wildwood business adnfmistrator. City council may decide his fate as early as June 6. Last week, council rejected Ostrander's first nominee, Dr. Hubert Maultsby, former Atlantic City administrator. Council President Victor DiSylvester said the - (Page 20 Please)

Creek Pipe I Job: Who Will Pay? COURTHOUSE — Who's going to pay to replace a 2000-foot -long, deteriorated, fivefoot diameter piped portion of Cape Island Creek between Broadway and West Perry Street in Cape May? Some of the county freeholders were hoping four affected municipalities — Cape May.^West Cape May. Cape May Point and Lower Township — would share the cost with the county. The 57-year-old pipe has collapsed in many places and causes flooding in the Fow Tract in West Cape May and in parts of Cape May Point and Lower Townsh.p. Cape May Mayor Arthur Blomkvest and West Cape May Mayor John Vasser told the freeholders last week that ,they understood the county would pay for it. THE COST HAS been estimated at from $250,000 to $300,000. "I don't think you'll get Cape May. West Cape May. Cape May Point and Lower Township to agree to anything, frankly.'.' said Blomkvest. "It's a community problem." said Freeholder Gerald M. Thornton. "The county is least responsible. It should be a cooperative effort." Blomkvest said Freeholder William Sturm, director of Public Works, told the mayors at an April 25 meeting "the county would handle it." STURM WAS NOT present at the freeholder meeting last week. "That's what he sajd." said Blomkvest. (Page 20 Please)

'That's Show Biz' Fox Sues Phil for Libel

By E. J. DUFFY COURf HOUSE - Sheriff Beech Fox answered county GOP chairman Philip Matalucci's taunts with a libel suit Monday afternoon. Matalucci has called on Fox to answer allegations that the sheriff failed to report in-kind campaign contributions during his 1980 run for Congress and his 1981 bid for reelection. Standing for his sixth term in the June 5 Republican primary against Matalucci's favorite. Ocean City Patrolman James Pious is, Fox turned around the chairman's allegations in a five-count libel suit. In a press release Monday, Matalucci questioned another Congressional campaign contribution which. Fox said, he'll address in an amendment to the suit. IN THE SUIT. Fox blames Matalucci for issuing statements or releases to the media "with malicious intent, to cripple )

(my) reelection chances "Since publication of the libelous words of defendant. (I) have observed a general reaction among the public of surprise and disappointment at what was perceived as (my) alleged dishonest and irresponsible conduct," Fox wrote in the suit. After filing it, he said he will seek $1 million punitive and $5 million in compensatory damages from Matalucci. plus court costs. "I am vehemently denying that any money was improperly taken or that any reports were illegally filed ... with the Federal Election Commission," the sheriff added. "There were no monies improperly obtained, reported or filed, period "What makes him think they're wrong or incorrect or illegal?" Fox asked of Matalucci's questions about the 1980 and 1981 campaign contributions "WHY DOESN'T HE (Matalucci) take (Page 53 Please)

CHRISTINE MASON Blueberries Survived

Remember Last Week's Frost Threat? BELLEPLAIN - It may be 80 degrees today, but a freeze warning last week threatened 100 acres of blueberries and the sanity of their owner Greg Masoq The blueberries, on Mason's 30C-acre Tarkiln Farm, are in full bloom and should be worth a half million dollars in early July, he said. But if the temperature had dropped a couple degrees lower last Tuesday or Wednesday night, they could have been wiped out. Mason used to burn tires to fight the threat of freezing weather, but antipollution laws now: forbid that. So. he arranged for "Skywork." a helicopter service owned by Lynn Hayward of Downstown, to provide potential protection. IDEA WAS THAT, if the temperature got low enough, the helicopter would stir the air and rafee the temperature Hayward spent Tuesday night in Mason's bunkhouse, but the temperature went no lower than 36 degrees. Weather forecasters said it would be warmer Wednesday night, so Mason released Hayward. In fact, the temperature dropped to 31 degrees. Mason was interviewed -by telephone last Thursday after being up all night Tuesday and Wednesday. He was too tired to talk in complete sentences. WHAT WAS the cost for a helicopter on reserve in Belleplain? "Enough." said Mason And what did he do Wednesday night, with no helicopter, but a 31 -degree reading? "Prayed." And what did he think of the weather report that misled him? Here Mason did come up with more than a one-word answer. But it was unprintable.

Avalon Has Lowest Tax Rates

COURT HOUSE - Cape May County's mo6t exclusive seashore communities — Avalon and Stone Harbor — have the lowest tax rates in the county Middle Township has the highest Property values < rotables) and the number of children going (o school appear to be the main reasons. There are few children in Avalon and Stone Harbor, but almost all homes sell in the six-figure range. Avalon's total tak rate is 81.3 cents per $100 hundred dollars of assessed valuation Stone Harbor's is .94 cents, and Middle Township's is $3,381. Tax rates for the county, library, schools and local purpose were reported this week by George Raymond Brown III, county tax administrator Avalon. for example, was revalued last year, raising its assessed valuation from $283 million to $816 million. Purpose of revaluation is to assess a community at 100 percent oTmarket value Avalon's is 118.51 percent, according to Brown. And Stone Harbor's is 104.44 As the assessed valuation goes higher than 100 percent, the county tax rate should decline proportionately As,, the assessed valuation goes lower than 100 (See chart, page 20) percent, the county tax rate should increase proportionately Middle Township and Upper Township, assessed at 69.16 percent and 54.74 percent of market value, are slated to be revalued this year. Brown said. Thus their ratables will increase next year, and their lax rates decline. The difference in equalization rate affects the county and library tax rates, which are .406 and .025 overall. But. because each community has a different equalization rate, the county tax rate ranges from Avalon's .345 to upper's .738. The library tax rate difference is slight from .021 in Avalon 4o 046 in Upper > Ocean City has no County library tax because it is not part of the county library system. School district tax rates vary con sjderably, from lows of .062. .091 and .113 in Cape May Point. Stone Harbor and Avalon. respectively, to Middle's high of

""Early Deadline" Tomorrow, May 24 at 5 p.m. is the » deadline for news and advertising .for next week's issue because of 4 be Memorial Day holiday. '