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Sparse Sunny, Warm Partly sunny and warm TBEdMW today, Becoming cloudy, Red Bank, Freehold showers likely, tonight and to- < Long Branch FINAL morrow. I 7 EDITION Monmouth County's Outstanding Home Bfowspaper VOU94 NO. 57 Hi;i) HANK.N. J. Till USD AY, SKITIttlllKK 16,1971 £*• & i 1 / Use of IRS Funds Is Hit By DORIS KULMAN ors-including the IRS-and meet two weeks payroll, Mr. Rus- Victor Crichton, a field representative in the OEO's N.Y. jobless come Oct. 1. sell said. The agency receives ?2.5 million a year in federal regional office anil the man whose name is signed to much of MCAP employes aren't covered by unemployment com' WASHINGTON - Monmouth Community Action Pro- funds. the correspondence telling MCAP it's got to shape up or shut pensation. .gram's use of payroll taxes owed the Internal Revenue Ser- He told newsmen on Tuesday that MCAP will have to shut down, yesterday denied that he knew about MCAP's use of es- Employes were reported shocked by the information that vice to pay MCAP expenses "is improper... prohibited" and down tomorrow unless the OEO sends money or gives the crow funds. their payroll taxes were overdue at the IRS. Employes also a practice all CAP agencies were warned against in writing a county agency authorization to seek a bank loan. "But it doesn't surprise me," Mr. Crichton commented, were reported worried over whether the agency has kept up year ago, James Bouton, chief of the federal Office of Eco- The OEO, MCAP's parent, is withholding all funds and "they've had their problems..." pension plan payments-the employes and the agency pay into nomic Opportunity's Grants Control Branch, said yesterday. has threatened to shut MCAP down this month unless OEO of- William Dandridge, chief of technical assistance in the the pension plan on a matching basis. Wilbert C. Russell/deputy director of MCAP, the Mon- ficials are satisfied by tomorrow that MCAP has taken signifi- OEO's Washington office, said The Daily Register inquiry yes- Several employes reported they had been assured by su- mouth County official antipoverty agency, acknowledged to cant steps to meet sweeping fiscal, administrative and pro- terday "is the first indication I've heard" of CAP agency use pervisory personnel that the OEO had refunded MCAP for the newsmen on Tuesday that the agency owes the IRS $65,008 in gram changes the federal agency mandated on Aug. 31 after of escrow funds to meet expenses. fiscal year which began Sept. 1. overdue employe withholding taxes, and has used the money seeing an MCAP audit and program report. to meet its payroll. He said MCAP is broke. The matter of informing employes about the agency's fi- Mr. Bouton said that after the Treasury Department in- Mr. Dandridge said he couldn't comment on the MCAP nancial .situation and its possible effect upon their jobs was The IRS money was deducted'from employes' paychecks formed the OEO last October that it had "found some in- situation "because I've not been apprized of all the facts." to pay income tax and social security. raised at a meeting of the executive committee of the MCAP dication some CAP agencies" were using escrow funds "we "But I worked In a CAP agency for six years and it cer- board of trustees last Friday, Employe payroll taxes are supposed to be put in escrow put instructions in writing to all our CAP agencies reminding tainly wasn't the practice there," he added. -placed in a special depository account-and not used for any them that they were absolutely not to use the IRS mon- Joseph C. Irwin, director of the MonouW County Board of The executive committee meetings aren't public. But ac- other purpose, an IRS official said. ey... the practice is improper and it is prohibited,.." Freeholders, which gives MCAP about $35,000 a year and cording to the official minutes of that meeting, Richard Blass, Mr. Bouton said that when the Treasury Department dis- a trustee, "stated that the MCAP personnel should be advised Mr. Russell said the OEO knew about MCAP's use of es- names one-third of. the MCAP board of trustees members, said of the financial situation to which Mr. Russell answered that covers a CAP agency has used IRS funds for other purposes crow- funds. He said MCAP has done the same thing every yesterday that he knows nothing about the agency's fiscal • "it's supposed to notify us and we're supposed to withhold all all the supervisors had been thoroughly briefed and all staff year for the past seven years because of the lag between the procedures or problems. He stressed that the county hasn't were aware. money from the agency until it settles with-the Treasury." beginning of the fiscal year and the receipt of federal grant any supervision or control of the agency's operation. That would make an interesting situation for MCAP, Mr. Blass has said he resigned from the board immediat- money. The agency always has caught up financially, some- Mr. Russell meanwhile has called a meeting of all MCAP ely following the Friday meeting. which says it used the IRS money to meet its payroll because times bv taking temporary loans from local banks (OEO has employes for this morning. it didn't have any other source of funds to pay its employes. now restricted MCAP's borrowing authority) and has "bar- Several MCAP employes report that newspaper stories Mr. Russell is the agency's top man pending the return of MCAP, which ended its fiscal year Aug. 31, is broke, at gained with the IRS every year" because of tardiness in pay- yesterday were the first indication they've had of the agency's Joseph E. Taylor, executive director, who is reported con-. least $75,000 in debt, and needs $100,000 to pay its credit- ment but never has been penalized, Mr. Russell said. precarious situation and of the possibility that they might be valescing at his Neptune home from a bout with pneumonia. Middletown Charter Parley Attracts Few By BOB BRAMLEY kind of gimmick. On a*question as important as this, we ex- pected the room to be overflowing," Mr. Makely said, eyeing MIDDLETOWN - It could have been the heat, because the sparse crowd. the air conditioning unit in the Township Committee meeting He apologized for the absence, too, of Dr, William Miller room was still out of commission last night. of Princeton, the committee's professional consultant who It could have been apathy. Or it could have been simply drew up the draft administrative code and has advised the that most of those township residents who will vote on a new committee since 1966 on the contemplated new form of town- government charter in November have already made up their ship government., , minds. "Dr. Miller was scheduled to be here, but he had an emer- At any rate, an expected overflow crowd did not material- gency session and begged off," Mr. Makely explained. " ize at last night's initial information session staged by the Folly Approved Township Committee on the proposed charter and the admin- The committeeman outlined highlights of the special act istrative code that will implement it. creating the charter, stressing that it js the charter and not Instead, facing the committee in the hot and sticky meet- the administrative code which will be.before the voters in No- ing room were eight residents, two candidates for Township vember. In addition, Mr. Makely emphasized, the charter has 1 Register stall Photo Committee and three news reporters. been approved by both houses of the state legislature and HEAT OR APATHY? — Members of AAiddletown Township Committee wondered what kept residents Commltteeman Edward P. Makely, asked by Mayor Har- signed by the governor,^ it cannot be changed. oway in droves from forum on new township charter and administrative codein Township Hall last old H. Foulks to chair the session "because he has spear- Therefore; he added, forums scheduled on the charter will nlaht. Was It because Inoperative air conditioning made hgll hot and stuffy, or don't the voters care? headed this thing," explained the gathering was called as an serve to inform voters of what they are voting on, not sessions Answer may come in November, when township residents approve or reiect new charter on, referen- information and discussion meeting on the special act of the in which suggestions for charter change can be considered. dum. ..,'•-' . .: '. ••''•','•.-'.•''••. state legislature creating the charter and to provide the public Mr. Makely stated the Township Committee and its ad- with information on the first draft of an administrative code. visers have not wished to make the charter too specific in de- "We hoped the room would be filled. Maybe we need some See Middletown, Page 2 EBSCO Head Indicted Shrewsbury Police Chief By Federal Grand Jury Reports Denied by Mayor WASHINGTON - The JusJus-- to disguise the donation rree- EBSCO is a conglomerate,. on for some time...time,.." J. ' J J tice Department announced portedly made to the 1966 One of its divisions, Military 'But no one's.been 'found indictments yesterday against campaign of Alabama Gov. Service Co., is headquartered guilty of anything/* Mr, SHREWSBURY - Reports tween the council and Chief and in New Shrewsbury who discussed taking official ac- three Alabama businessmen George Wallace's late wife, in Shrewsbury, N.J., and also McClendon'said, "It's/bnly an that the governing body is Mass grew recently when he said Chief Mass overstepped tion against the police chief or on income tax charges in- Lurleen, who succeeded him serves as an EBSCO branch indictment.

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