The News Journal du lieu suivant : Wilmington, Delaware • Page 1

Wild pitch I neips Phillies defeat Giants 6-4 weather Variable cloudiness with a chance of afternoon and evening thundershowers today. High in the low to mid 80s; low tonight about 70. Details, Page 3. A Gannett newspaper, Wilmington, Vol. 6, No.

32 Saturday, July 21, 1979 20 cents Copyright 1979. The News- Jour Co Pn "15 'msid' re cession starts Economic output drops; The increase, the first since the dollar rescue program was announced Nov. 1, was intended to counteract rapid expansion of the U.S. money supply and to dampen credit demands. Courtenay M.

Slater, chief economist for the Commerce Department, told a news conference "there are underlying strengths in the economy which cause us to believe that the recession will be of limited magnitude and fairly short By EILEEN ALT POWELL WASHINGTON (AP) The nation's economic output plunged sharply in the second quarter this year, marking the start of what Commerce Department officials said yesterday would be a mild recession. Production of goods and services fell at an annual rate of 3.3 percent from April through June, the largest quarterly drop since the depths of the 1974-75 recession. Output had risen 1.1 percent in the first quarter of 1979, the report said. Most of the decline in gross national product the value of all the U.S. 1 goods and services produced after the effects of inflation are taken into account was blamed on a slump in automobile and gasoline sales.

Meanwhile, the Federal Reserve Board announced it was raising the interest rate charged on its loans to member banks from 9.5 percent to a record 10 percent. Carter finishes Cabinet shuffle by firing Adams By WILLIAM J. EATON Los Angeles Times Service WASHINGTON Ending a week of political crisis, President Carter yesterday completed a shake-up of his Cabinet by ousting Secretary of Transportation Brock Adams and replacing controversial Secretary of Energy James R. Schlesinger. Carter selected Deputy Defense Secretary Charles W.

Duncan Jr. to take over from Schlesinger in a couple of months and tapped another Pentagon official, Navy Secretary W. Graham Claytor to fill Adams' job on a temporary, 30-day basis. Despite angry protests on Capitol Hill and elsewhere against the removal of five of 15 Cabinet officers since they agreed Tuesday to tender their resignations, Carter insisted that he was "well-pleased" with all the changes. The president, grim and unsmiling, came to the White House press room late yesterday to announce that the exodus of Cabinet members was over.

"The transition from one leader to rXtvi 7 1 1 Energy Secretary James R. Schlesinger draws a crowd on Capitol Hill yesterday after testifying before a House committee. President Carter accepted the energy secretary's resignation earlier in the day. (AP) Prison population up; 'critical' problem seen revised growth figure of 4.8 percent. Last week, the administration acknowledged what private economists have been forecasting for weeks: that the economy will fall into recession and show a decline of 0.5 percent in output this year.

The recession could cost more than 1 million workers their jobs by the end of the year, and inflation is expected to exceed 10 percent. In fact, the Commerce Department report shows inflation up in Ms Lewis said that, while the main issue is security, the prison has some critical problems, particularly in the maximum security building where the toughest and most violent inmates are kept Another major problem is the low beginning pay for guards, she said, which is about $6,500 plus what is known as hazardous duty pay. She also cited the problem of drugs of all kinds still being smuggled into the prison with the help of some guards. These range, she said, from marijuana to heroin, morphine and speed. The warden recalled that recently a shakedown of a long-term prisoner's cell revealed a sizable quan- See PRISON-Page 2, Col.

3 office in White Plains, N.Y., noted the company is not associated with either tanker but said, "Our captains and support personnel in Trinidad and Tobago have been instructed to give their fullest cooperation in dealing with this emergency." Lloyd's Register of Ships and the American Bureau of Shipping Record list both tankers as coostcr shot When the Phillies lost three starting pitchers in 24 hours, title hopes faded. Then, up from the minors, came Dickie Noles, who has given the Red Hats a needed shot in the arm. Even if auto and truck sales pick up in the next few months, she said, the nation "would still see some drop in overall gross national product in the third quarter." A recession traditionally is defined as an actual decline in gross national product for two successive three-month quarters. The Carter administration had been predicting the economy would grow a modest 2.2 percent this year, compared with last year's newly -5s. day was William J.

Conner, chairman of the corrections committee of the Delaware Council on Crime and Justice, on his first visit to the prison. During their discussions with the warden yesterday, the visitors were told that one of the major problems in the prison is the unusually high turnover of correctional officers' staff. "We have these training sessions but after some of the men start to work, they find out that a prison is not for them as a place of employment," Redman said. Redman also said that, despite the educational classes in the prison and the prison industries devoted only to furniture repair, there is still too much idleness within the compound. with claims that could reach $150 million.

He said that was based on $50 million for the ships and $100 million for their cargos, although Lloyd's did not know exactly how much oil the ships were carrying. Texaco, the U.S. oil firm that has a big refinery on Trinidad, announced it was sending the Texaco Plaisance firefighting rig to battle the fires. A statement from the Texaco Law man David Hume III could have been the head of the legal staff of the C. O.

Railroad. Instead, he teaches college and moonlights as Little Creek's police chief. Newcomer? If you have moved to Delaware recently, you probably have questions about everything from how to register your car to how to get a fishing license. A special Newcomers' Guide will give you the answers. the April-June quarter to 9.9 percent, compared with a rate of 9 3 percent in January-March.

The department said that, before adjustment for inflation, gross national product totaled $2.33 trillion in the second quarter, up $35.1 billion or an annual rate of 6.3 percent from the first quarter. After inflation adjustments, however, gross national product showed an $11.8 billion drop. See ECONOMY Page 2, Col. 3 Au Clair: an answer, or more questions? Copyright 1979, The News-Journal Co First of five articles By MARGARET KIRK To disheartened and sometimes desperate parents of autistic children, the Au Clair School must sound like the answer to their prayers. Here is a 28-room mansion in Delaware's pastoral countryside dedicated to the care and training of children who have a mental disturbance marked by strange and withdrawn behavior.

Au Clair is the home of the fabled Silk Stockings, the harness racing horse that set world records and kept the school going. But there are other Au Clair stories, ones not yet told by the TV shows, national newspapers and magazines that made much of the heartwarming tale of the little school and the dreams a horse made come true. They are stories of beatings, dunkings and one case of a boy whipped with a riding crop. Former staff members say the children are abused and the parents misled. The stories about the horse that saved a school are nothing more than a farce, they say.

The school, now 10 years old, still promises in federal directories that there will be two teachers for every five students, two full-time speech and hearing specialists, one full-time langauge development therapist and five mental health workers. The same directory descriptions boast of 200 acres, two lakes, a playground, two swimming pools, tennis courts and horses. In reality, many of them are not true. The Division of Social Services and the state attorney general's office investigated the untold story of the Au Clair school from November until June 6. On that date the division sent a letter to the school rejecting its application for a new license.

Kenneth M. Mazik, the owner and executive director of the school, has called the state's action "unprofessional." He staunchly defends techniques others view as abuse techniques that indeed are endorsed by experts in the' field when used properly and are accepted by parents who defend Mazik and hail the results he has achieved with their children. Mazik says he is taking steps to have Au Clair's application reconsidered. The News-Journal papers began their own probe of the school last month. Three dozen people past and present staff members, parents, state officials and experts in See AU CLAIR -Page 5, Col.

1 inside Cut driving costs You can do more than go 55 if you're willing to change your style. P. 38. Carter supports ban Administration supports initiative to curh oil mergers in a moe that appears out of line vtith stand against inflation. P.

19. Autoworld 38 Arts 8 Astrology 10 Bridge 10 Business 19 Classified 33 Comics 10 Editorials 12 Obituaries 13 Record 5 Real Estate 23 Religion fi Sports 15 Television 14 Weather 3 By WILLIAM P. FRANK Delaware Correctional Center's population soared to a new high of 819 yesterday amid sweltering heat and uncertainty over the top leadership of the state prison system. Conditions in the prison near Smyrna have become "very critical," according to Martha Lewis, executive director of the Delaware Council on Crime and Justice. On the other hand, Warden Walter W.

Redman praised the inmates for "keeping their cool under present conditions." Ms. Lewis toured the prison yesterday along with several officials of the private agency devoted to prison problems and with members of the governor's prison advisory another will be orderly and properly conducted," he said. "There are a few vacancies which I will fill without delay." Turning on his heel, Carter walked rapidly out of the room, giving no answer to a reporter's question on his personal feelings about the massive change in his administration's high command. "I expect a quiet weekend," press secretary Jody Powell said, indicating no important announcements would be made today or tomorrow. The remaining major job opening is the chairmanship of the Federal Reserve Board, left vacant by Carter's choice of Chairman G.

William Miller to succeed deposed Secretary of the Treasury W. Michael Blumenthal. Carter also must name new Cabinet officers to head the Department of Transportation as well as the Department of Housing and Urban Development. HUD Secretary Patricia Roberts Harris has been tapped to replace Joseph A. Cali-fano Jr.

at the Department of See CARTER Page 2, Col. 4 committee. After the tour, Ms. Lewis said: "The situation in the prison is such that right now anything could contribute to a blow-up within the overcrowded and understaffed prison. The tension has been increasing lately." Under the order of U.S.

Judge Murray M. Schwartz, the prison population can not be above 650, but 701 were packed in yesterday in buildings that include five dormitories that Ms. Lewis says are "not conducive to an orderly way of living within a prison." In addition, the recently opened pre-release building had its capacity of 1 18 inmates. Still hanging over the administration of the prison is the uncertainty of what will happen in the higher Officials said one tanker was listing badly and in danger of sinking. Police said coast guard boats from Trinidad and Tobago, joined by a number of private craft, saved 41 crewmen all 36 from the Aegean Captain and five of the 39 from the Atlantic Empress.

The survivors were taken to a hospital on Tobago. Coast Guard Petty Officer Austin Pratt in Miami, said reports combat elements in Korea should await credible indications that a satisfactory military balance has been restored and a reduction in tension is under way," he said. Early this month, in a visit to Seoul, Carter proposed three-way talks with North Korea and South Korea on reducing tensions. Last week, the Communist regime in Pyongyang rejected the proposal, but left the door open for South Korea to attend some negotiations with the United States as an "observer." brzezinski said the freeze on U.S. See HALT-Page 2, Col.

3 echelon of the Department of Correction with John J. Mulvena III asking to be relieved of his duties as chief of the bureau of adult prisons and the unconfirmed reports that State Prison Commissioner James T. Vaughn may be ousted by Gov. Pierre S. du Pont IV.

Fredrick H. Stern, the governor's press officer, said yesterday he has heard these rumors but he added that, for the time being, there will be no changes in the top level of the department. Mulvena said yesterday he is still waiting for a meeting with the governor and Vaughn on his request that he be permitted to return to his old job as chief of juvenile corrections. Among those who made the tour of the Smyrna prison yester were "circulating that 1.6 millions barrels of oil spilled." He said the Coast Guard had no firm figure, but if both tankers were loaded such a huge spill would be possible. A spill of 1.6 million barrels 67.2 million gallons would make it the largest ever involving ships.

A spokesman for the insurance group Lloyd's of London said the collision also could be the most costly accident in marine history, Supertankers collide; oil spill may be biggest ever PORT OF SPAIN, Trinidad (AP) The blazing hulks of two abandoned supertankers drifted within sight of Tobago yesterday and a huge spreading oil slick threatened to foul the resort island's glistening white beaches. The tankers reported fully laden, one with crude oil and the other with refinery products collided during Thursday night and 34 crewmen were reported missing. doming sunsisi; U.S. troop cutbacks halted in S. Korea Tough tests Delaware's three-day bar examination starts Wednesday.

Among those taking the test will be Ray Hancock, 53, holder of five degrees and librarian at the state's correctional center. By BARRY SCHWEID WASHINGTON (AP) President Carter ordered a halt in most U.S. troop cutbacks in South Korea until at least 1981, the White House announced yesterday. The decision represents a reversal by Carter of his commitment as a presidential candidate to bring almost all the troops home. Explaining the freeze, Zbigniew Brzezinski, Carter's national security adviser, said North Korea was building up its forces beyond previous U.S.

estimates. "It is the judgment of the United States that further reductions of our.