SERVING THE PEOPLE OF MADISON COUNTY SIN^E
Vol. 84 No. 11
PUBLISHED WEEKLY IN THE COUNTY SEAT
MADISON
COUNTY LIBRARY
^NERAL DELIVERY
NC .
??i
uNESDAY, March 14, 1984
Federal Grand Jury Indicts Three
DOT Employees, Contractor Charged In Bid-Rigging Probe
By Robert Kocnig
A federal grand jury in Asheville has return
ed indictments against two officials of the
North Carolina Department of Transportation
and an Asheville contractor on charges of bid
rigging a $20 million contract to build the
i 10-mile section of U.S. 25-70 between Marshall
and Weaverville.
Baxter A. Taylor, 66, the president of the
Asheville Contracting Co. was indicted on
charges of conspiracy, violation of the Sherman
Anti-trust Act and three counts of mail fraud.
Also charged were two DOT employees, Ed
ward Hume Paschall, 61, of Black Mountain
and William Albert Ricker, 43, of Mars Hill.
Paschall is a retired former resident engineer
who oversaw. the U.S. 25-70 project. Ricker is a
DOT maintenance crew leader.
Paschall has been charged with three counts
of extortion and Ricker has been charged with
two counts of extortion in connection with the
project.
The indictments involve two contracts let in
1978 and 1979 in connrtection with the project.
One contract called for construction of the road
from Marshall to Jupiter Rd. and the second
contract was for construction from Jupiter Rd.
to Weaverville.
The contracts were awarded to the Asheville
Contracting Co. and Phillips and Jordan Inc.,
formerly of Robbinsville. In 1981, Phillips and
Jordan president Ted Phillips and vice presi
dent Ben Turner pleaded guilty to bid-rigging
on the same contracts.
The indictments handed down Friday charge
that Baxter Taylor submitted a bjd on the pro
ject in conspiracy with other construction com
panies. Taylor is charged with submitting a
deliberately high bid on the project so that it
would be awarded to Phillips and Jordan.
Taylor is also charged with making false
statements to the Federal Highway Ad
ministration concerning the formulation and
submission of bids on the project.
The contractor is also charged with giving
gratutities to the DOT employees who oversaw
the construction of the road and with making
political contributions to elected officials for
the purpose of generating good will and new
highway construction.
The three counts of mail fraud stem from
Taylor's use of the U.S. Mail to forward
materials concerning the highway construction
contracts and to obtain periodic payments from
DOT for work performed on the road project.
The indictments charge Paschall and Ricker
with accepting gifts from both Asheville Con
tracting Co. and Phillips and Jordan, Inc.
Both Paschall and Ricker are charged with
receiving unreimbursed accomodations at a
Hilton Head, S.C. villa owned by Asheville Con
tracting Co. and for accepting round-trip air
transportation and lodging at a Falfurrias.Tex.
hunting resort at the expense of Phillips and
Jordan.
Contacted by telephone Sunday, Ricker refus
ed to comment on the indictments.
Ricker, Paschall and Taylor appeared before
the federal magistrate in Asheville Monday
morning on the charges. All three men were
released on $2,500 unsecured bond pending a
March 22 arraignment hearing.
U.S. Attorney Charles Brewer told reporters
the indictments "have the potential for leading
to the biggest investigation" his of ice has ever
handled. Brewer would not disclose how far the
investigation might go, but added that it is con
tinuing.
Brewer also said, "The information we got
was shocking to us. Who knew about it and what
they did and didn't do. But that's another day,
another case."
If convicted, Paschall and Ricker face up to
20 years in jail and $10,000 fines for each count
of extortion. Taylor could face up to five years
in prison and a $10,000 fine for conspiracy and
and additional three years and $100,000 fine for
violation of the anti-trust act. The three counts
of mail fraud carry a maximum sentence of
five years in prison and $1,000 for each count.
Brewer told The News Record, "We have
completed a significant investigation of bid
rigging practises in the paving and construction
industry in North Carolina. The one thing that
earner across in our investigation was that bid
rigging was a way of life for 40 years. There's
no way in the world that it could have gone on in
such a pervasive fashion without state officials
knowing of it. At the very least, they had to
have turned their heads."
Brewer said that his office is continuing its in
vestigation, adding that in many cases, the
statute of limitations for prosecution is almost
up.
Board Of Education
V ' * ? ' 4. ' , ' ' ' "x" ?;
Adopts Budget,
84-85' School Calendar
By Robert Koenig
The Madison County Board
of Education approved the
1964-85 school calendar and a
proposed budget for the up
coming school year at last
Wednesday's meeting
Board members approved a
proposed budget of $1,604,941
for the 1964-85 school year,
nearly triple the budget for the
current school year. The pro
posed budget will be sent on to
the county commissioners for
consideration.
School superintendent
Robert Edwards said that the
budget was prepared after
consultation with principals at
the county's seven elementary
schools and Madison High
School.
The county's consolidated
high schoool would receive the
lion's share of the proposed
budget. Included in the pro
posed budget is a request for
$43,000 to purchase 41
typewriters and eight com
puters for the high school. The
high school is also requesting
$6,000 to purchase hand-held
calculators for the
mathematics classes.
Madison High School prin
cipal David Wyatt has also re
quested funding to make
repairs to the school's roof.
Edwards said that the pro
posed budget includes a re
quest for an additional $20,000
to cover electric bills over the
1963-84 budget. The additional
funds are needed, Edwards
said, because of rate increases
from the French Broad Elec
tric Membership Corporation.
FBEMC general manager
Charles Tolley addressed
Wednesday's school board
meeting and said that the utili
ty company will put an addi
tional 12 percent increase in
effect on April 27.
Toliey defended the in
crease, saying it is the result
of an increase in the wholesale
rate charged by Carolina
Power and Light Co.
Edwards read a report on
the February energy charges
for th# county's eight schools.
Madison High School and Mar
shall Primary School, which
operate on the same meter,
had a combined bill for the
month of $18,093. The Board of
Education's total bill from
FBEMC for the month was
$22,374.
Tolley said that some con
servation measures could help
reduce the cost of electricity
in the school's. He recom
mended that the board ap
prove funds for constructing
air locks on the high school's
doors.
Tolley also said that the high
school's roof is inadequately
insulated, with an R value of
only 5 when insulation of R-19
to R-30 is needed. He added,
however, that the estimated
cost of reinsulating the roof on
the 140,000 square foot
building would approach
$250,000.
Edwards told board
members that state funds pay
for approximately one-third of
the school's energy bills, but
that the county must pay the
rest. The superintendent also
reported that the county's six
schools which use oil for
heating used 25,821 gallons
during - 19 school days in
February, for a total cost of
121,428.
The school board also gave
its approval to a school calen
dar approved earlier by a ma
jority of the county's school
personnel.
The board also approved the
use of the school's as polling
places during the May 8
primaries. In order to ac
comodate the elections, the
board authorized making May
8 a half-day teacher's leave
day and half-day teacher's
(Continued On Page 8)
Hot Springs To Seek
Block Grant Funding
* - - ?
Development
Block Grai to fund
two projects in the town, ac
rding <> Debbie
er Tta to apply
for the cjrant hind# was mad
it a public h* ringo? Mar. hS
> the start of
??
to
th,
tion will also be AM for a
grant with which to convert
Main Street into*
mM Um a
was e town
ipproved the grant
8 used to make
will be needed This is re
quired because CDBG
guideline* state that all pro
jects must benefit residents
with tow and moderate in
Baker also said that the
WW conduct a
seastati on Thursday
night to determine which
in the town arr- i t
pnoto by Bo? xotnlfl
BILL HENDON addressed Madison County
Republcans during Saturday's county conven
tion.
REP AARTIN,
County convent
M shaJ
Hendon and Martin
Address County
GOP Convention
Some 60 Madison County
Republicans attended the
county convention Saturday
afternoon in the Madison
County Court House. The par
ty faithful heard from several
candidates for state and
federal office and elected
delegates to the state conven
tion in April.
Former 11th District con
gressman Bill Hendon attend
ed the convention and was the
first candidate to address the
meeting. Hendon will
challenge Rep. James Mc
Clure Clarke in the November
election.
Hendon told the convention,
"I was proud to run with
President Reagan and Vice
President Bush in 1980, and
I'm proud to be running again.
I believe that we have the
finest slate of candidates
we've ever had in one year
this time. We've got a lot to
look forward to on Nov. 6."
Commenting on the large
audience, Hendon said,
"Many of you remember when
we couldn't fill a jury box at
the county convention. 1964 is
going to be a very good year."
Hendon lashed out at
Democratic presidential can
didates Walter Mondale and
Gary Hart, calling them,
"Carter's vice president and
McGovern's campaign
manager."
Speaking of the Republican
Party, Hendon said, "We
believe that we offer the
fairest deal and the best hope
for this country. We believe
that the best government is
the least government. In
dividual initiative and incen
tive made this country what it
is. The working man should
keep as much as possible of
his hard earned dollars."
Addressing the. audience,
Hendon said, "You've been
there through thick and thin.
Madison County, North
Carolina and the nation will be
better off for what you do."
County chairman C.N.
Willis introduced the can
didates for the N.C. Senate,
saying, "I don't know how we
got three candidates for the
Senate, when last time we
couldn't get any."
Buncombe County attorney
Bruce Snyder, a former
District Court judge, told the
convention, "I'm just about
fed up with the blatant politics
of the likes of Swain and Win
ner."
Snyder said that he would
work for the repeal of the state
sales tax on license plates
enacted by the General
Asembly last year. He also
called for stiffer penalties for
drug pushers, reminding the
convention that Sen. Dennis
Winner introduced legislation
that would have reduced the
penalties for possession of less
than eight ounces of mari
juana.
Snyder toJd the convention,
"I'm your candidate if you
want someone who'U get tough
on marijuana and cocaine and
welfare fraud. I assure you
that I will introduce legisla
tion that will improve things,
not cause them to
deteriorate."
Recognizing the candidacy
of Mars Hill attorney Bruce
Briggs, Snyder said, "I'm not
going to tell you in Madison
County to vote for me and not
Bruce Briggss, but I do hope
that you will make me your se
cond choice."
John Stewart, Jr., also a
candidate for the State Senate,
told the convention, "I know
what it means to work for a"N.
living and to run a business.
I'd like to take some of that ex
perience to Raleigh."
State Senate candidate
Bruce Briggs did not attend
Saturday's convention. At
torney Forest Ball addressed
the convention on behalf of
Briggs.
County vice chairman Pat
Roberts introduced guber
natorial candidate Ruby
Hooper.
Hooper, a licensed dietician,
told the convention, "North
Carolina has the largest per
cent of working women of any
state in the country. No can
( Continued On Page ?)
No Decision On County
Block Grant Request
dents attended a public (
meeting held Monday night to i
discuss a possible appBcation (
for Community Development i
Block Grant (CDBG) fundi ]
Those attending the session i
were hoping that the county i
? apply for gram mone> i
housing rehabilitation |
They were disappointed when i
Madison Coun
Authority director Sam .
Parter informed them that
Parker informed those at
tending the Monday night
meeting that recent changes
prepared by the North
Carolina Department of
Natural Resources and Coom
nunitv Development (NRCD)