Hijackers of Italian ship
One American passenger killed
By NEJLA SAMMAKIA
Associated Press Writer
PORT SAID, Egypt An Italian
cruise ship steamed into port under
government orders today, nine hours
after Palestinian pirates surrendered
and freed more than 500 people
aboard. The captain said they had
killed one American passenger.
Police sources said the Achille Lau
ro, originally schedule to continue its
cruise to Israel, was brought to port
for an investigation of the death of
Leon Klinghoffer, 69, of New York,
who was traveling with his wife,
Marilyn, 58.
The State Department late yester
day confirmed Klinghoffer was
killed.
Capt. Gerardo De Rosa said in a
radio conversation with state-run
Italian television yesterday night that
a terrorist who had blood on his
clothing admitted to the murder on
Tuesday
"They told me shortly after they
killed him, I think, because the Pales
tinian who killed him had pants and
shoes covered with blood," De Rosa
said.
He spoke from the ship as it lay at
anchor 15 miles outside Port Said,
preparing to sail for Ashdod, Israel.
But the government, which an
nounced earlier a security check had
turned up no explosives, later or
dered the vessel into port for a fur
ther inspection.
The captain said he was told of
Klinghoffer's murder at 3:05 p.m.
Tuesday, the day after the pirates
took control, while the Achille Lauro
was outside the Syrian port of Tartus
on Tuesday,
De Rosa said the pirates came to
him and said: "Now we have killed
one."
"They made me write it down and
told me to call Tartus," De Rosa said.
Budget woes force
fancy bookkeeping
nancing Bank, to cover the
borrowing.
The bank was set up in 1973 and
WASHINGTON, D.C. The Senate given $l5 billion in reserve borrowing
voted 75-24 yesterday to force the power.
government to balance its annual The Senate approved and sent to
budget in six years, but the vote the Hobuse a measure to temporarily
failed to end an impasse over legis- extend the government's borrowing
lation to extend the government's power by just this $5 billion. But
exhausted borrowing power. House Ways and Means Committee
The balanced-budget amendment, Chairman Daniel Rostenkowski, D
which drew strong bipartisan sup- 111., said the Senate action was.unnec
port, came as the Senate worked on a essary since the Treasury had
measure to extend the current debt already borrowed the money.
ceiling to above $2 trillion. And, Rostenkowski said, the Trea-.
However, the Senate did not finish sury could borrow up to the full $l5
its work on the overall bill and efforts billion with no additional congressio
to approve a short-term extension of nal action whereas the Senate
the debt limit collapsed late yester- legislation would have held this
day. amount to $5 billion.
The Treasury Department held an The Treasury action took the pres
emergency auction, anyway, at sure off Congress to deal with the
which it borrowed an additional $5 debt limit extention right away, con
billion, a sum officials said would gressional leaders suggested.
keep the government afloat for anoth- The balanced budget plan, en
er week. dorsed by President Reagan, would
Without congressional action to dramatically alter the process by
cover the $5 billion, the Treasury which government funds are autho-
Department was forced to do some rized and spent, requiring that the
fancy bookkeeping utilizing a sel- president and Congress meet increas
dom-used agency, the Federal Fi- ingly stringent yearly targets.
By TOM RAUM
AP Economics Writer
Yul Brynner
loses battle
with cancer
NEW YORK ( AP) Yul Brynner,
who made a career playing the bald,
autocratic monarch of Siam in "The
King and I," including a record 4,625
performances on stage, died early
this morning, his spokesman said. He
was 65.
With him when he died at 1 a.m. at
The New York Hospital-Cornell Medi
cal Center was his wife, Kathy Lee
and his four children, said Josh Ellis,
the actor's spokesman.
"He died of multiple complications
that came as a result of what was
originally cancer," Ellis said.
weather
Morning sunshine will gradually
give way to clouds. High 72.
Mostly cloudy this evening with
possible showers. Low near 50
the
daily
Klinghoffer, a Jew, suffered a
stroke several years ago that left him
paralyzed on the right side. He was in
a wheelchair and could walk only
short distances with a cane.
The 51-year-old captain said the
four pirates took over the ship at
about 1:30 p.m. Monday, firing Sovi
et-made submachine guns and bran
dishing hand grenades and other
explosives. He said they herded the
passengers onto a lower deck.
One terrorist came onto the bridge,
"first fired some shots into the
ground screaming in Arabic, and
then told me to head to Tartus.
"I was continually guarded on the
bridge with submachine gun," he
said. "They hoped to find asylum in
Syria," he said, and when the Syrians
refused entry "they told me to head
towards Libya."
Radio monitors in Beirut, Lebanon,
said Tuesday that they had picked up
an exchange between the Achille Lau
ro and Syrian authorities in which a
hijacker said: "We threw the first
body in the water after shooting him
in the head. his wife is wailing about
it. We shall kill one every 15 min
utes." '
De Rosa had said by radio Tuesday
evening, in a call monitored by Beirut
port officials, that everyone on the
ship was well. About a dozen Ameri
cans were aboard, and earlier uncon
firmed radio reports had said two
were killed.
U.S. Ambassador Nicholas Veliotes
said in a radio transmission to the A group of American tourists stranded when Palestinian gunmen
U.S. Embassy in Cairo that after Achille Lauro waited on the stairs of their hotel yesterday before
Klinghoffer was killed the terrorists
showed De Rosa the passport of
Mildred Hodes, another American
passenger, and told him: "She goes
next.'!
Veliotes said: "She pleaded for her
life. They said, 'Okay, but you (the
captain) tell those Syrians that we've
killed two.' They then kept a gun on
New developer expands hotel plans
By JEANETTE KREBS
Collegian Staff Writer
A proposed $7 million hotel planned for South Ather
ton Street has changed real estate developers and will
now be larger than originally planned and employ
three times as many workers.
The hotel was first proposed in August by local real
estate developer Edward J. Lauth 111, but the Patt
Organization of Hollidaysburg recently purchased an
agreement of sale for the property from Lauth.
P. Jules Patt, president of the real estate devel
opment corporation and a candidate for the 1986
Democratic gubernatorial nomination, was unavail
able for comment because he was campaigning in
Pittsburgh
During the past 10 years, Patt has dealt with $l5O
million in real estate in and around Pennsylvania.
The hotel will be built on the properties of 119 S.
Atherton St., which holds the closed Arriba Restau
rant, the restaurant's parking lot, The Flick movie '
theater on 129 S. Atherton St., two houses at 125 and 133
S. Atherton St., and a garage at 122 Cresson Alley.
Heinz Mathis, senior vice president for the Patt
Organization told members of the College Township
Industrial Development Authority yesterday that the
hotel will now hold 140 suit units instead of the 110
Lauth had originally planned.
"With the current growth in State College, we think
there is room for another facility," he said.
Along with the 140 suits, the first level of the complex
will be used for commericial businesses. A lounge,
Collegian
them constantly and anyone else near
the radio and threatened to kill any
one who told the truth."
After his investigation, Veliotes
ordered the Embassy to tell the
Egyptian Foreign Ministry that the
United States insisted on prosecution
of the hijackers.
surrender
by terrorists
The Foreign Ministry said the ter
rorists surrendered to representa
tives of the PLO.
Abdel-Salam Morgan, the shipping
line's local agent, said general man
ager Gaetano Casiero told him the
Achille Lauro would sail for Ashdod,
Israel, the, next scheduled stop.
nightclub and exercise facility will also be built, he
said.
"This will be a first-class operation in downtown
State College and we think it will fit in nicely," Mathis
told the authority
Because of the additions to the hotel, Mathis said the
number of employees the complex will need will triple
from the original figure Lauth gave the authority. •
"Between 100 and 125 employees will be hired
because of the added facilities," Mathis said.
Lauth originally said 31 workers would be hired and
this was without food or beverage , workers, Mathis
said.
Parking will not be a problem because there will be
150 parking spaces in a ground-level parking lot with
two sub-level lots, he added.
Authority members questioned the $7 million hotel
price tag because it is the same cost Lauth estimated
without added facilities. But Mathis said the project's
original estimate was high.
"We're still going to use the $7 million figure," he
said.
Lauth sold his controlling interest in the project to
Mathis, who is the former vice president and general
manager of the Sheraton Penn State, 240 S. Pugh St.
Authority chairman Robert Ishler said after the
meeting with Mathis the authority approved the pro
ject.
Lauth's name on the application, which was already
sent to Harrisburg for state approval, will be changed
to the Patt Organization. Mathis said the plans should
be completed by November.
University watches
divestiture movement
By DAMON CHAPPIE
Collegian Staff Writer
As Ivy League Columbia Universi
ty Monday joined the growing num
ber of institutions divesting millions
of dollars of stocks in South African
related companies, trustees and ad
ministrators here are watching the
developments as the divestiture deci
sion day for Penn State approaches.
The University Board of Trustees
will decide Jan. 17-18 if it should
divest more than $6.1 million in
stocks and bonds of American compa
nies doing businees in white minority
ruled South Africa. The University
currently follows a policy of partial
divestment, investing in companies
that follow strict guidelines for pro
moting equality for Blacks in the
workplace.
"I think it has given us food for
thought," Trustee Marian U. Cop
persmith said of Columbia's decision
to divest.
"It looks like they've made a deci
sion to divest gradually with intel
lect," she said. Columbia, the first
Ivy League college to do , so, will
divest $39 million during the next two
years.
Coppersmith said she is certain the
administration is collecting informa
tion on Columbia's decision as well as
the recent full-divestiture decisions of
the University of Arizona and Rutg
ers University.
But some trustees say they are
looking at aspects of divestment that
are often drowned in the din of stu
dent protests on campuses across the
country.
hijacked the
flying home.
University Trustee President Obie
Snider said he is extremely con
cerned about the consequences of full
divestment as the University enters a
multi-million dollar fund-raising
campaign that is counting on contri
butions from many of the 300 U.S.
PSU dean sought for
lowa State presidency
By DAMON CHAPPIE
Collegian Staff Writer
Wilbur Meier, University dean of
the College of Engineering, is one of
six finalists for the presidency of
lowa State University, sources there
said.
Virgil Lagomarcio, search commit
tee chairman for lowa State, confirm
ed that Meier is a candidate for the
chief post there, although Meier said
previously that he is not actively
seeking the position.
Meier, who has been head of the
University's College of Engineering
since 1981, said several weeks ago
when his name appeared on a list of
25 candidates in lowa that he "had no
interest in going to lowa."
Meier is in California this week and
could not be reached for comment.
His secretary said Meier has not been
notified of the latest list.
Lagomarcio said Meier's name was
one of six that appeared on a nar
rowed-down list released Tuesday.
He refused to say if he had been in
contact with Meier.
In September, when asked how his
name appeared on a list of 25 candi-
Thursday, Oct. 10, 1985
Vol. 86, No. 65 18 pages University Park, Pa. 16802
Published by students of The Pennsylvania State University
©1985 Colleglan'inc.
corporations operating in South Afri
ca.
That concern was heightened after
the national chairman of Rutgers'
$3OO million capital fund-raiser re
signed after the initial decision to
divest was made in September.
James Burke, chief executive offi
cer of Johnson & Johnson, resigned as
Rutgers' fund-raising chairman be
cause he thought the university's
divestment action made him ineffec
tive in that position, a Rutgers
spokeswoman said.
"Penn State is at the doorstep of a
capital campaign," said Snider. "The
very people that we are approaching
for contributions are the very people
that we might divest from. That is a
very important consideration."
The newly-named national chair
man of the Campaign for Penn State,
William Schreyer, chairman and
chief executive officer of Merrill
Lynch, could not be reached for com
ment yesterday. His secretary said
he is on a national speaking tour.
Snider said he has not spoken with
Schreyer about divestment. He added
that if what happened at Rutgers
repeats here, "it would be a severe
blow for what we intend" in the
campaign
Trustee Nancy Kidd said a divest
ment decision could hurt the cam
paign, but could also be beneficial.
"It could go either way. Some peo
ple contribute based on their emo
tions and may withhold if they think
the money is going towards an immo
ral purpose," Kidd said. •
She noted that Brown University
alumni withheld contributions until,
after the university rectified a sex
discrimination case against women
several years ago.
Coppersmith agreed that a move to
full divestment could have adverse
effects on the University's five-year
fund-raising campaign.
Please see DIVEST, Pagelß.
dates, Meier said he was contacted by
a search company that attempts to
locate qualified executives for posi
tions. He said he refused to give his
resume the first time he was con
tacted, but consented on the second
request.
Meier said he was unaware of any
of the developments at lowa State.
"I don't even have a lowa State
catalog," he said.
Meier has served at lowa State
before as the chairman of the Depart
ment of Industrial Engineering in
1973-74. Meier left there to head the
school of industrial engineering at
Purdue University for seven years
before coming to Penn State in 1981.
Lagomarcio said the board of re
gents for lowa State, similar to Penn
State's Board of Trustees, will begin
interviewing candidates after Nov. 1.
A final decision will be made by
year's end, he said.
lowa State is similar in many re
spects to Penn State. It is a land grant
institution of almost 27,000 students.
lowa State University President W.
Robert Parks, 70, is retiring early
next year after 20 years in that posi
tion.