Rio Grande Herald (Rio Grande City, Tex.), Vol. 34, No. 48, Ed. 1 Thursday, September 16, 1976 Page: 1 of 10
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Gas Company Valuations
Blasted As Too Low
By Chuck Von Schanwitz
Herald Staff
Gas company properties
within the Rio Grande School
District "have been grossly
undervalued."
That is the belief of school
board members , according to a
source close to the trustees.
This undervaluation is
statewide, the course added.
The Board of Equalization of
the school district has doubled
the valuation of local owners'
properties but refrained from
boosting the valuation of oil and
gas properties.
Board of Equalization
members said oil and gas
companies threatened a law
suit if their valuations were
hiked and that such a suit might
lead to closing of the schools.
The school board originally
had urged that the $22 million
boost in valuations required by
the state legislature - to raise
an additional $450,000 in taxes -
be split evenly between local
owners and the gas and oil
companies.
The school system needs an
added $450,000 due to
Legislative action boosting the
fund requirements from local
sources.
"Evidence in the hearings
showed that oil and gas
properties - particularly gas
properties - were grossly un-
dervalued," the source said.
Gas company reserves were
valued mostly at 25 cents to 30
cents per MCF (1,000 cubic
feet), the source said, while the
evidence showed that the
market value per MCF ranges
anywhere from $1.70 to $2.50.
"This means the valuation
amounts to only y7th or l/8th of
the market value," he added.
Gas property valuation
should be increased by not less
than $60 million, conservatively
speaking, the source asserted.
The gas companies claim
they have some contracts to sell
gas at 25 cents or 30 cents per
MCF, the source said, "but they
refuse to produce the con-
tracts."
"A principal tax agent of one
of the oil and gas companies
doesn't even know where the oil
and gas goes after production,"
he added.
The gas companies say a lot
of the gas goes into interstate
commerce -- under federal
price control - but even there
the price is set at the higher
rate of 52 cents per MCF, the
source said.
The source cited "a peculiar
fact" emerging from the
hearings.
"In 1971 the valuation
engineers employed by the
school district valued a certain
oil field at $13 million," he said.
"Within five years that oil
field produced about $23 million
worth of oil and some $5 million
worth of gas," the source said.
"This year other valuation
engineers have valued the same
field at $31 million," he added.
He said the oil and gas
companies agreed that all these
valuations were correct.
"How can an oil field increase
three times in value after
producing $28 million in oil and
gas when the market value of
oil in the same period went up
only by 40 per cent?" the source
asked.
"Obviously the field was
grossly undervalued in 1971,"
he added, "and still is un-
dervalued in view of today's gas
market value."
He also pointed out iliat
royalties are paid on the basis
of the lower price and not the
true market price, the source
explained.
"That means the royalty
owners are thus being deprived
of part of what should be their
earnings," he charged.
"In the same manner the
state itself - which is entitled to
7 per cent of the selling price of
gas - is deprived of part of its
share," the source said.
The source also alleged that
"a lot of the gas the companies
produce, they sell back to
themselves at undervalued
rates."
The source >aid school board
members are strongly opposed
to doubling local owners'
valuation while retaining the
old valuations for gas and oil
companies.
RIO GRANDE
"The Largest Paid
Circulation Going
In Starr County "
Vol. XXXIV
No. 48
Thursday, September 16, 1976
Ten Cents
To Provide Better Housing For Poor
Move To Improve Housing In Starr County
A move to improve housing in
Starr County and at the same
time provide a better place to
live for poor families is about to
become a reality in Rio Grande
City.
A little over six years ago, on
May 25, 1970 the Starr County
Commissioners Court created
the Starr County Housing
Authority. Ever since then, the
local authority with the
cooperation of Joel Guerrero
Jr. of Starr Realty, had been
trying to get approval from the
Department of Housing and
Urban Development for an
application for low-cost housing
under the Section 23 leased
Housing Program of the US
Housing Act of 1937 as amended
and the Department of Housing
Development Act.
The project was on and off
during all these period. Starr
Realty continued exploring all
avenues from Rio Grande City
to Washington, D.C. Finally, the
Section 8 Program came along
and an application was
resubmitted under Section 8 of
The Housing Ac... This was
disapproved but the Depart-
ment of Housing and Urban
Development tried to help by
recommending a Developer
from Houston. Time went by
and it seemed as if the project
would never become a reality.
The local authority signed a
contract with the Perry R.
Smith Development corp. of
Houston. A new application was
resubmitted under Section 23.
The project was finally ap-
proved after many changes had
to be made under Section 23 of
the leased Housing Program
and of the 64 units originally
applied for the project has now
been approved for 44 family
type dwellings of low-rent
housing.
The Local Authority, is un-
dertaking to provide housing for
Families of Ix>w Income at a
total cost of approximately
$850,000. The Project will
consist of 44 family type
dwelling units and related
improvements, including
equipment for cooking and
heating, refrigerators and the
real estate upon which the
Project will be located. All units
will be brick veneer on concrete
slab and will contain one or
more dwelling units. The
dwelling units will be located on
one site of approximately seven
acres in Rio Grande City.
The Project Contractor and
Developer is the Perry R. Smith
Development Corporation of
Houston, Texas. The Project
will be constructed by Alfred D.
Hughes Corporation of Round
Rock, Texas in accordance with
plans and specifications
prepared by Lynn Hardin of
Beaumont, Texas, the Ar-
chitect.
The Starr County Housing
Authority organized the Starr
County Housing Development
Corporation to assist the
Authority in providing low-rent
public Housing. The Board of
Directors of the Starr County
Housing Authority are: Arnoldo
Vera of Rio Grande City
Chairman, Noel Guerra of La
Grulla, Vice Chairman, Edison
Rodrigo Palacio and Noel P.
Benavidez of Roma, Texas. Dr.
Bruno M. Trevino of Rio
Grande City was recently ap-
pointed Executive Director nf
the Starr Cosunty Housing
Authority. The Board of
Directors of the Starr County
Housing Development Cor-
poration are: Mr. Juan F.
Farias of San Isidro, President
and Chairman, Jose A.
Hinojosa CPA of Rio Grande
City Vice President, and Nance
E. Munoz of Roma, Secretary
Treasurer.
No Federal Money For
De velopm entC)f Lan (I
Peso Devaluation Seen
Harming Mexican Economy
Reports drifting across the
Mexican border tend to confirm
what some businessmen here
suspected all along - that the
peso devaluation was an ill-
considered, spur-of-the-
moment move that may shatter
Mexico's economy.
Here are some of the
developments since President
Luis Echeverria took the peso
off its 12.50-per-dollar parity
Sept. 1 to "let it float to its own
level:"
- Treasury Secretary Mario
Ramon Beteta is seeking U.S.
$700 to $900 million in special
drawing rights from the In-
ternational Monetary Fund to
"help the peso through its
crisis;"
- The Mexican government
abolished a 10 per cent subsidy
for exports and instead is
levying taxes on exports;
- The Mexican government
suddenly decided to levy taxes
ranging from 2 to 50 per cent on
imports, thus endangering the
free flow of trade;
- Inflation within Mexico has
mushroomed since
Echeverria's de facto
devaluation - in Mexico City
alone close to 1,000 stores, in-
cluding some of the capital's
largest, reportedly have been
closed or fined by government
inspectors for marking up
prices;
- Finance Secretary Rarnon
Beteta admitted that next week
the government will begin
negotiations "to adjust prices
and salaries to the new parity" -
- and obviously these aren't
going to be downward ad-
justments;
Echeverria reversed
himself this week and said the
peso would be maintained at a
more or less fixed parity with
the dollar beginning next
Monday "to head off in-
flationary pressure;"
- This parity is to be at 19.90
pesos sell and 19.70 buy.
The peso on the international
monetary markets has dropped
from 7 U.S. cents to less than 5
cents within the two weeks
since the "flotation" of the peso
was announced.
Meanwhile, many Mexican
financiers and businessmen
were inclined to blame
President Echeverria's policies
during the past six years for the
peso crisis.
They point to his ill-
considered move in backing
third-world nations in their
"racism" charge against
Israel. This, understandably,
caused a Jewish travel boycott
which made deep inroads on
Mexican tourism profits.
Also cited were Echeverriu's
repeated efforts - such as his
ostentatious visits to Castro's
Cuba and Allendc's Chile - to
align himself with Marxist-
leninist governments.
Some Mexican businessmen
say it was Echeverria's con-
stant wooing of the far left that
caused the capital flight from
Mexico - which in turn is
blamed for the flotation of the
peso.
They also say the underlying
reason for the Mexican
president's leftwing and third-
world wooing was his desire to
be named secretary - general of
the United Nations.
But some businessmen on
both sides of the border this
week still clung to their con-
viction that the peso would
eventually settle at a 17-per
dollar parity.
And this feeling was shared
by businessmen who attended
the recent Mexican trade fair in
San Antonio.
These observers pointed to a
previous turnabout by the
Mexican Treasury in 1972.
The Treasury then decreed a
2-per-cent-odd surtax on
proceeds from investments in
Mexico. Within two months, a
banker recalled, Mexican
banks lost some 50 per cent of
their foreign and Mexican in-
terest-bearing deposits.
The Treasury then hurriedly
reversed itself and booted in-
terest rates on investments by
about 3 per cent.
Today foreign investors in
Mexican bonds and other
securities face a loss of some 40
per cent of their investments. A
foreign depositor of 125,000
pesos in a Mexican bank two
weeks ago had the equivalent of
$100,000 U.S. dollars in his
account. Today he's still got his
125,000 pesos - but they're
worth only about $60,000 U.S.
dollars.
And, observers point out,
Mexico is very much dependent
on foreign investments to keep
its economy jazzed up, so that it
can provide the new jobs
needed each year as Mexico's
birth rate continues to soar and
unemployment is rampant.
"They'll have another
revolution there if they don't
watch out," commented a Rio
Grande City businessman.
( loss Of69
Meeting
A special meeting will be held
by the class of 69 on Thursday,
Sept. 16.
The meeting will be at the
home of Frank Villanueva, 1509
N. East St., at 7:00 p.m.
All members are urged to
attend.
For information call Rolando
R. Vela, 487-2032.
Starr Bond
Sales Told
July sales worth $8,126 of
Series E and H United States
Savings Bonds in Starr County
were reported today by county
bond chairman Rene G. Smith.
Sales for the seven-month
period totaled $65,886 for 55 per
cent of the 1976 sales goal of
$120,000
Texas sales during the month
amounted to $22,909,105, while
sales for the first seven months
of 1976 totaled $162,475, 938 with
60 per cent of the yearly sales
goal of $272.4 million achieved.
Rolando Flores of the In-
dustrial Foundation last week
told the Rio Grande City School
Board that no federal help could
be obtained to develop some
59.9 acres of land owned by the
school district.
He said this was because the
land is situated in a flood-prone
area.
"You can't get federal
money," Flores said, "but
private industry might come
in."
Flores said that if he heard of
a company interested in a
commercial or industrial site on
the land owned by the school
district he would refer the
company to the school board.
Trustee Javier Margo said
the land could be split up into 5-
or-10-acre sites and sold to
interested companies. He cited
a potential $500,000-odd value of
the land.
In other business the school
board:
- agreed to send the three-
man board of equalization a
letter of thanks and com-
pensation for the time spent on
hearings;
- tabled a request for a right-
of-way in Ringgold subdivision;
- resolved to project a
comprehensive education
planning report to the Texas
Education Agency for con-
tinued accreditation of schools
in 1977 and 1978 under new
accreditation rules;
- agreed to go into the
Community School Program
and, to have director Narciso
Guerra head a task force to
assess community needs for the
education of adults;
- agreed to have Oscar
Cardenas of Austin aid the
school district in making sure it
applies for all federal or
foundation funds to which it
may be entitled;
- took notice of a report that
the La Grulla junior high school
will be completed within two
weeks;
- took notice of a report that
the vocational department of La
Grulla junior high school is to
receive $26,927, of which the
Texas Education Agency will
supply 76 per cent while the rest
is to be made up of local mat-
ching funds.
ESAA, What Is It?
The ESAA (Emergency
School Aid Act) programs
nation-wide are categorized
into Bilingual, Basic, Pilot, as
well as special projects which
are authorized for non-profit
organizations.
The Rio Grande City Con-
solidated Independent School
District is currently involved
with an ESAA Bilingual
Bicultural project. This project
encompasses an office staff
which includes a Coordinator
Evaluator, a Supervisor Staff
Developer, a Secretary
Bookkeeper, and a Staff
Developer Assistant Com-
munity Aide. Other personnel
are resource teachers with
teacher aides which team-teach
together with the regular
classroom teacher. These
persons provide for group study
as well as individualized in-
struction. In addition, the ESAA
project involves student-aides
from the high school and also
student-tutors from grades 6, 7,
and 8.
The ESAA Bilingual Project
has as its objectives:
+ to extend the existing Title
VII Bilingual program into the
5th and 6th grade;
-I- make available remedial
services to the 4th grade
wherever possible wiih em-
phasis on reading;
+ make available staff
development services thro-.gh
consultants and college courses
from Pan American Univer-
sity;
ft '
M
HISTORIC LANDMARK - The Ringgold Hotel here dates back to 1899, when it was built
by Frenchman Francois Laborde as his private mansion. Later it was turned into a hotel
and second-story wings were added.
Hotel Was Luxury Mansion
+ development of materials
with emphasis on local cultural
heritage to be disseminated
throughout grades K thru 6th;
(Student-aides) and,
+ implement a Cross-Age
teaching (Student-Tutor)
component in grades 4, 5, and 6
to assist in developing reading
and language skills of our
children.
The ESAA Bilingual program
involves approximately 1,031
students in grades 4, 5, and 6.
Schools directly affected by the
project are Ringgold In-
termediate School, Ringgold
Primary School, La Union
Elementary School, Grulla
Primary School, and Grulla
Elementary School.
If any persons are interested
in obtaining more information
or visiting any school where the
project is implemented, feel
free to contact anyone at the
ESAA Program office at 487-
5032 for assistannce.
Winner
Announced
During the recent Grand
Opening of the new HEB store
in Rio Grande City, a drawing
was held as part of the
ceremonies for the new store.
The grand prize winner was
Mrs. Erna Irene Herschaps of
1809 W. Main, Rio Grande City.
The Grand prize was an i8
inch color television set. The
drawing was held Sept. 4.
The throngs of hunters that
flock to the Ringgold Hotel here
every whitewing season
probably don't know it - but
they're lodging in one of Starr
County's historic landmarks.
The huge two-story building
used to be the private mansion
of a wealthy French
businessman, Francois
Laborde.
The hotel's present owner -
George R. Boyle - is a local
historian of note. He has dug
deep into the history of what
now is the Ringgold Hotel.
"Laborde went back to
France around 1898," Boyle
relates "and had a famed
Parisian architect design the
home of his dreams."
"That was shortly before his
marriage to the daughter of a
pioneer family here," he added.
In 1899 the ground was broken
for the original wing of the
building. San Antonio con-
tractors were in charge of the
building work.
"The contractors had to come
here from San Antonio by stage
coach," Boyle relates. "There
were no trains or cars in those
days."
Later second-story wings
were added to the original
mansion, Boyle relates.
In 1918 the mansion was
converted into a hotel. Its
guests came mainly from
nearby Fort Ringgold, which
finally was shut down in 1948
Among the mementoes of Rio
Grande City's past history that
adorn the hotel today is a
painting of the last river boat
that steamed to the city. It was
the Bessie.
The large painting - carried
out in a colorful mural style - is
by Humberto Cavazos of Rio
Grande City.
Boyle displayed an old
document. It states that in those
days "the river flowed within
two blocks" of where the hotel
stands.
Other river boats that Dlowed
upriver to Rio Grande City
included the Corvette, the
Ranchero, the J.E. Roberts, the
Major Brown, and the Hatchee
Eagle.
"The river boats went out of
business when the railroads
reached the area," Boyle
relates.
Another large and colorful
painting adorns the hotel lobby.
Also by Cavazos, it depicts an
event that happened some 90
years ago here.
In the background a vast,
black tornado is roiling the
skies. In the foreground are a
priest and a nun, praying to
shield the town from the tor-
nado, and a motley of
frightened men and women.
The painting records some of
the ancient superstitions - a
vaquero is firing a pistol toward
the tornado and a woman is
cutting the turbulent air with
her scissors, both hoping to
ward off the tornado.
"According to legend," Boyle
relates," the tornato veered off
and failed to hit the town."
Last Sunday night several
dozen whitewing hunters and
their families attended the
annual party Boyle throws for
them in the hotel's lush patio.
The hunters appeared to be
happy with the crop of birds
they harvested on the last day
of this year's whitewing season.
"Many of them have been
coming to the hotel every year
for 10 years and more," Boyle
said.
Some, Boyle said, try to make
reservations a year in advance.
"But I can't take reservations
that far in advance," Boyle
says.
Boyle - in partnership with
the late Gen. J. S Rodwell -
bought the hotel in 1939.
Boyle has been in the Valley -
on and off - since 1910, when he
lived in San Benito.
Boyle in the intervening years
- until he settled down in Rio
Grande in 1953 - was in the oil
business.
After he graduated from
Harvard University with a
degree in geology, he spent a
number of years in Oklahoma
and in Latin America.
Whon Boyle took over the
hotel, he modernized it - he had
17 bathrooms installed, for
example.
But despite the up-dating an
aura of Rio Grande City's past
history still clings to the solid
old building.
Methodist
PTA Meet
A Parent Teacher Association
meeting was held at the First
United Methodist Educational
building on September 7th, at
7:30 p.m. with Mrs. Simon
Garza presiding. One of the first
items on the agenda was the
election of officers for the 1976-
77 school year. The officers of
the Early Childhood
Development Center are
president. Diane Peterson; vice
president, Belinda Cumming;
secretary-treasurer, Juan
Gomez; and reporter, Rene
Rolando Lopez.
It was the consensus of the
group to have a Carnival for
Halloween and the chairperson
was named. Mrs. Ieo Olivarez.
Also the meetings are to be held
the last Tuesday of each month
at 7:30 p.m. Having had about
20 parents present, the group
enjoyed some refreshments
after going over the plans for
the year with teachers Mrs.
Orpha Lopez and Mrs. I.ydia
Piper
On behalf of the P.T.A. of-
ficers, I would like to cordially
invite all parents having
children enrolled for our next
meeting which will be on
September 28th, at 7:30 p.m., -
Respectfully Submitted, Rene
R Lopez
Rattlers To Host La Feria Friday
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Solis, Tony. Rio Grande Herald (Rio Grande City, Tex.), Vol. 34, No. 48, Ed. 1 Thursday, September 16, 1976, newspaper, September 16, 1976; Rio Grande City, Texas. (https://texashistory.unt.edu/ark:/67531/metapth194576/m1/1/: accessed June 10, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Rio Grande City Public Library.