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THE TEXAS ineuE TROOPER TALES Iloserver Pg. 11 A JOURNAL OF FREE VOICES FEBRUARY 10. 1989 • $1.50 StQvm *21,. IF IT WALKS LIKE A HAWK AND TALKS LIKE A HAWK BUT IT SAYS... `..1- ' • N *. , aft; I AM NOT A MINDLESS citoRY 13E! HAWK... ‘SNeT THAT vow DER FUL NEWS! rift, THE TEXAS NAPPY OIPU server oAYs ARE. A JOURNAL OF FREE VOICES We will serve no group or party but will hew hard to the truth as we find it and the right as we see it. We are dedicated to the whole truth, to human values above all interests, to the rights of humankind as the foundation of democracy; we will take orders from none but our own conscience, and never will we over- look or misrepresent the truth to serve the interests of the powerful or cater to the ignoble in the human spirit. Writers are responsible for their own work, but not for anything they have not themselves written, and in publishing them we do not necessarily imply that we The Chnshan Science Monier agree with them because this is a journal of free voices. JEFF DAN ZIGER SINCE 1954 Publisher: Ronnie Dugger Editor: Dave Denison Associate Editor: Louis Dubose DIALOGUE Editorial Intern: Gregg Watkins Calendar: Elisa Lyles Washington Correspondent: Richard Ryan Contributing Writers: Bill Adler, Betty Brink, Derogatory let's have 12 more months of antinuke, pro- Warren Burnett, Jo Clifton, John Henry Faulk, farmworker, big bad capitalist stories. Terry FitzPatrick, Gregg Franzwa, Bill Helmer, Depictions James Harrington, Amy Johnson, Michael King, I mean how else could the average Texan Mary Lenz, Dana Loy, Tom McClellan. Greg The purpose of Debbie Nathan's stay in touch with that strange disease that Moses, Rick Piltz, Gary Pomerantz, John meandering essay, "Frontier Violence," infects anyone who spends more than a week Schwartz, Michael Ventura, Lawrence Walsh (TO, 1/6/89) isn't clear, but in a short space in Austin. That's right, we keep re-electing Editorial Advisory Board: Frances Barton, she manages to include a number of clever Austin; Elroy Bode, Kerrville; Chandler Craig Washington because he doesn't stay Davidson, Houston; Bob Eckhardt, Washington, racial stereotypes and assertions, including in Austin. I am not saying that "Colorado D.C.; Sissy Farenthold, Houston; Ruperto Garcia, her casual derogatory characterizations of Valley Fever" is terminal but it does have Austin; John Kenneth Galbraith. Cambridge, Mexicans ("working wetback in a strange, no let's say interesting, effect on Mass.; Lawrence Goodwyn, Durham..N.C.; construction," children with "their cross- George Hendrick, Urbana, Ill.; Molly Ivins, a person's thought processes. Austin; Larry L. King, Washington, D.C.: Maury hatched eyes, staring north, point blank") Have a good year. Let's say keep up the Maverick, Jr., San Antonio; Willie Morris. and suggestions that Mexicans alone are good work (the strange/funny stuff will fill Oxford, Miss.; Kaye Northcott, Austin; James responsible for drugs, border violence, and the blank space). Presley, Texarkana; Susan Reid, Austin; Geoffrey the inhospitable climate she discerns. The Rips, Austin; A.R. (Babe) Schwartz, Galveston; Scott Harbers Fred Schmidt, Fredericksburg; Robert Sherrill, myth of the "unspoiled frontier" is a straw- Houston Tallahassee, Fla. figure, and it is the U.S. that has acted Layout and Design: Layne Jackson historically with racism, warmongering, and On to the Typesetter: Becky Willard exploitation of Mexico and her resources. Contributing Photographers: Vic Hinterlang, Bill The press (including the Houston Quayle Era Leissner, Alan Pogue. Chronicle's inaccurate reporting on the Big Contributing Artists: Eric Avery, Tom Ballenger, 10/14/88) of the poems Richard Bartholomew, Jeff Danziger, Beth Bend shooting) has consistently The review (TO, Epstein, Dan Hubig, Pat Johnson, Kevin Krcneck, misunderstood and mischaracterized the of Walter McDonald (a great poet) by James Carlos Lowry, Ben Sargent, Dan Thibodeau, Gail border, as if it is those Mexicans spoiling Hoggard (a good poet), two of Texas's best Woods. our border. Nathan's essay is in this long (I used the criteria of your critic-reader Managing Publisher: Cliff Olofson tradition. Lawrence Perrine), gives me an idea for Subscription Manager: Stefan Wanstrom the next eight years: read poetry, not Special Projects Director: Bill Simmons By the way, while "pendejo" does Publishing Assistant: Joe Espinosa Jr. translate as "pubic hair," it really means newspapers; fiction, not news magazines Development Consultant: Frances Barton "stupid." With her views, Nathan must hear (the major difference being that in fiction SUBSCRIPTIONS: One year S27. two years 548. three years S69. Full- the word a lot. the writing is better, if not best). time students SIS per year. Back issues S3 prepaid. Airmail. foreign. group. and bulk rates on request. Microfilm editions available from University Michael A. Olivas At the end of eight years my career as Microfilms Intl.. 300 N. Zeeb Road. Ann Arbor. MI 48106. Any current a literature teacher will be over and Dan subscriber who finds the price a burden should say so at renewal time; no Houston one need forgo reading the Observer simply because of the cost. Quayle will be president and that is for the THE TEXAS OBSERVER (ISSN 0040-4519/UPS 541300), Comic best. He looks like the most popular of my ©1989, is published biweekly except for a three-week interval fraternity brothers and he thinks like two between issues in January and July (25 issues per year) by the Relief of them (Sigma Chi's best), John Wayne Texas Observer Publishing Co., 307 West 7th Street, Austin, Texas 78701. Telephone: (512) 477-0746. Second class postage OK, here is how I want to support the and Barry Goldwater. I hope Quayle is paid at Austin, Texas. Observer. I am "extending" my president at the end of my career. POSTMASTER: Send address changes to THE TEXAS subscription. Yeah, sometimes TO gets I want to take all of you with me when OBSERVER, P.O. Box 49019, Austin, Texas 78765 some stories' facts so far from reality it I go actually is funny. But their humor (even Jim Byrd when not intended) is at least a relief. So Commerce 2 • FEBRUARY 10, 1989 j -.• THE TEXAS EDITORIAL Cbserver FEBRUARY 10, 1989 VOLUME 81, No. 26. Mutually Insured FEATURES Bush and Taxes Destruction By James Ridgeway 5 An Agenda for Progress HERE IS NOTHING so dull as an "schizophrenic set of responsibilities." By Dave Denison 6 T insurance company scandal. Never Not to worry. It is not as if the three mind that the owner of Dallas-based commissioners and the professional staff at Salvadorans in Houston By Louis Dubose National County Mutual allegedly played the agency were torn asunder by cross- 8 fast and lose with rules of the inthistry, pressures that result from serving two Lord of the Highway wrote himself millions of dollars in checks, constituencies. The 79-page Adams Report By Robert Elder, Jr. 11 cooked his books to convert a $20 million reveals that the commissioners, deputy deficit into an admittedly modest $349,453 commissioners, and the professional staff DEPARTMENTS surplus, then disappeared. And that the state frequently disagreed on a number of issues agency established to regulate the industry (often related to personality); but they Political Intelligence 13 detected this $19.7 million "error" then recognized only one constituency: the failed to act, though they did complain about insurance companies. And even when they Books and the Culture "if not false, at least misleading financial obviously should have acted to protect the Chomsky: The statements." And that at least 24 other interests of the companies, bureaucratic Terrorism Within insurance companies in the state are, bungling got in the way. By Bryce Milligan 18 Lovers in a according to Kay Doughty, director of the For years the board was aware that the Monochromatic World Officer of Consumer Counsel for insurance Dallas-based county mutual was in serious By Rosalind Alexander matters, in positions as precarious as financial trouble. As early as 1983 the 19 National County Mutual. And that much of company was tagged with the precedent Afterword the loss to policy holders is going to be adjective that usually suggests either You Don't Need socialized as insurance companies deduct "teens" or "thrifts" will follow. According a Weatherman 22 Guaranty Trust Fund contributions from tax to Adams, National County Mutual was payments, depriving the state of hundreds identified as a "troubled" company as early NCM's certificate of authority. Again, of millions in revenue. as 1983. But the information was only according to the Adams Report: "A staff Insurance scandals are dull because they available in the SBI's Financial Analysis attorney submitted a notice of intention to are made up of actuaries and numbers and Unit and never forwarded to other depart- agencies and accountants and rarely involve ments in the agency. institute disciplinary action to NCM." elected public officials. Jack Smith, David By 1985 the agency's Legal Services NCM responded, advising that its attorney Thornberry, and James Nelson are not division was onto the spoor of serious policy had compiled an impressive stock of informa- household names. Not yet, anyway. And the rate overcharges and actually went so far tion which he was sifting through. The NCM scandal they are involved with is not the as to negotiate an agreement by which NCM attorney stated that he had prepared rough result of any public official's corruption. It would repay $53,543 to policy holders and drafts of most to the responses which he would is, rather, a crisis of competence. A scandal pay a $5,000 penalty to the state. But be forwarding to the agency in the next week caused as much by the failure to act as by according to the Adams Report: "The NCM or two.