THE TEXAS BS A Journal of Free Voices EJuly 7, 1978 500

• Spoetzl: The little brewery that can • Coors: The only beer in the • Beer brands: You are what you drink

Small beer:

By Jim Hightower and Susan DeMarco Shiner, Austin Coming over a low, rolling hill in south-central Texas and curving into the valley toward Shiner on state highway 95, a traveler is greeted first by a weathered billboard touting Pearl beer; then, at town's edge a hundred yards down the road, The Texas stands a Lone Star sign in an even worse state of repair. One more bend into town and there between Old Brewery Road and OBSERVER Boggy Creek stands tidy Spoetzl Brewery, gleaming in the sun- The Texas Observer Publishing Co.. 1978 light, a white-brick testament to German-Czech sturdiness and Ronnie Dugger, Publisher pride. To a surprising degree, this contrast between the handsome Vol. 70, No. 13 July 7, 1978 little brewery and the faded billboards reflects the strength of the three beer companies. Pearl and Lone Star, long the big Incorporating the State Observer and the East Texas Demo- boys of Texas beer, almost wrecked themselves through mas- crat, which in turn incorporated the Austin Forum-Advocate. sive expansion programs, expensive advertising campaigns, and EDITOR Jim Hightower the pursuit of regional brewery status. Both have been forced to MANAGING EDITOR Lawrence Walsh merge with out-of-state companies in desperate efforts to keep ASSOCIATE EDITORS Linda Rocaw ich their labels on the market. In the conventional wisdom of indus- Eric Hartman try analysts, Pearl and Lone Star have scrambled to get bigger EDITOR AT LARGE Ronnie Dugger in an effort to survive, and if the two have any failings, the experts would say that they are not yet big enough. PRODUCTION MANAGERS: Susan Reid, Susan Lee, Beth Shiner, on the other hand, is an instructive throwback to the Epstein days of locally based beers. The sixth smallest brewery in the ASSISTANT EDITORS: Vicki Vaughan, Teresa Acosta, Bob country, with a productive capacity of a mere 60,000 barrels a Sindermann year (compared to Pearl's 1.7 million barrels and Lone Star's STAFF ASSISTANTS: Margaret Watson, Margot Beutler, Beverly 1.5 million), Spoetzl has quietly maintained its own pace of Palmer, Harris Worcester, Larry Zinn, Jamie Murphy, Karrie Key, growth and chosen to go its own way, and wisely. Spoetzl oper- Christy Hoppe, Lisa Spann, Matthew Lyon, Helen Jardine CONTRIBUTORS: Kaye Northcott, Jo Clifton, Dave McNeely, Don ates in the black and has survived to become the last indepen- Gardner, Warren Burnett, Paul Sweeney, Marshall Breger, Jack Hop- dent brewery in Texas and one of the last in the United States. per, Stanley Walker, Joe Frantz, Laura Eisenhour, Dan Hubig, Ben "We're not doing as well as we'd like to be," says Spoetzl sales Sargent, Berke Breathed, Eje Wray, Roy Hamric, Thomas D. Bleich, manager. L. J. "Speedy" Beal, "but when I look back and see Mark Stinson, Ave Bonar, Jeff Danziger, Lois Rankin, Maury Maverick Jr., Bruce Cory, John Henry Faulk, Chandler Davidson, Molly Ivins, beers like Pearl and Lone Star that were sitting up there number Ralph Yarborough, Laura Richardson, Tim Mahoney, John Spragens Jr., Sheila R. Taylor, Doug Harlan Shiner's copper brew kettle: 40,000 barrels a year

BUSINESS STAFF: Cliff Olofson, Ricky Cruz 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 overlook or misrepresent the truth to serve the interests of the powerful or cater to the ignoble in the human spirit. The editor has exclusive control over the editorial policies and con- tents of the Observer. None of the other people who are associated with the enterprise shares this responsibility with him. Writers are responsible for their own work, but not for anything they have not themselves written, and in publishing them the editor does not neces- sarily imply that he agrees with them because this is a journal of free voices.

Published by Texas Observer Publishing Co., biweekly except for a three-week inter- val between issues twice a year, in January and July; 25 issues per year. Second-class postage paid at Austin. Texas. Publication no. 541300. Single copy (current or back issue) 50V prepaid. One year, $12; two years, $22; three years, $30. Foreign, except APO/FPO, $1 additional per year. Airmail, bulk orders, and group rates on request. Microfilmed by Microfilming Corporation of America, 21 Harristown Road, Glen Rock, N.J. 07452. Editorial and Business Offices: 600 West 7th Street, Austin, Texas 78701 MICSOODVf (512) 477-0746

2 JULY 7, 1978 What makes Spoetzl run?

one in the state of Texas not too long ago and they had to sell state's long-gone brands.) Today, the national firms of Schlitz, out, and when you talk about breweries in the great beer belt Coors, Busch and Miller sell 83 percent of the beer Texans country of Wisconsin and Pennsylvania and how many of those drink. That is 3 percent more of the market than they controlled shut down while were still surviving, I think that we've got to just a year ago (Obs., April 22, 1977), and it was Busch and be doing something right." Miller that made the big gains—Pearl and Lone Star both lost ground to the nationals. Hunkered down in a storm It cannot really be claimed that Shiner even has a share of the Small brewers do not enjoy a friendly business environment. national beer market, and with sales of about 40,000 barrels last For the past several years, the beer industry has been undergo- year, it brewed only three-tenths of a percent of the 11.7 ing what economists euphemistically call a "shakeout"—the na- million barrels of beer that Texans quaffed in 1977 (27 gallons tional beers have been killing off the locals, then the regionals, per man, woman and child). To those used to the popular notion and now some of the smaller-volume nationals. The economic that smallness means failure, it's hard to see in these figures any concentration has proceeded with rare speed—in 1960, there reason to cite Spoetzl Brewery as a modern business success, were 170 beer companies in the U.S.; the number is down to 46 yet that's just what it is. Behind all the quaintness of "The now, and falling. In fact, just five brewers control most of the Littlest Brewery" are some sensible entrepreneurs who have a beer market today—Anheuser-Busch, Miller (owned by Philip strong survival instinct and no intention of operating Spoetzl as Morris), Schlitz, Pabst and Coors account for 72 percent of all some kind of museum piece. U.S. beer sales, up from 45 percent of the market just ten years ago. One of the leading analysts of the industry, Emanuel "We've got a family brewery here, we all believe in the Goldman of Bernstein & Co., says Busch and Miller are headed product, and we ain't going to give up." toward a two-firm shared monopoly, thanks chiefly to the dev- —John Hybner, Shiner brew- astating effect their massive advertising power has on compet- master and stockholder itors. In testimony before the U.S. Senate judiciary committee this May, University of Wisconsin economist and antitrust ex- The Shiner story started back in 1909 when German and pert Willard Mueller also predicted the emergence of a Czechoslovakian farmers and businessmen in Lavaca County Busch-Miller monopoly "in which price competition is replaced worked up such a thirst for a taste of the homeland that they by escalating promotional competition and ultimately higher formed their own beer-making cooperative—the Shiner Brew- prices; an environment in which survival and success is dictated ery Association. Though those who took part turned out to be by market power, not efficiency; [and] the demise of most re- better beer drinkers than brewers, they didn't fold—instead gional brewers and the weakening of some major brewers as they came across one Kosmos Spoetzl, an honest-to-God Ger- effective competitors. - man brewmaster then working in San Antonio. They talked The climate in Texas is not a bit more hospitable to the Spoetzl into running their operation, and in 1915 sold the brew- smalls. (Gulf, Mitchell, Superior, Time, Galveston, Valley, ery to him. It was a good choice. Sabinas, Southern, Dallas and Champion are just a few of the Photos by Keith Dannemiller Sales manager Speedy Beal The brewery in 1910, and today The hospitality room: free beer

THE TEXAS OBSERVER 3 Even Prohibition, which took effect in growth and Shiner is a healthy enterprise makes today is for a draft account it has 1918 and knocked some well-established today as a consequence. "I had gone to a with some Pizza Hut outlets in Texas.) breweries for a loop, didn't faze Spoetzl. brewers' meeting and was shocked when Fundamentally, though, the small He turned out "near beer," sold ice, and the speaker said there would only be brewery's way of doing business remains (according to local tales) was not beyond about ten breweries left by 1985," the same. Shiner may not be. to your making up a late-night batch of the real Speedy Beal recalls. "I came back and taste, but at least you can know that it's a stuff, which he bootlegged around the told Mr. Ladshaw and he said, 'Well, no "real" brew, with none of the chemical countryside. Spoetzl survived, and when problem there; Shiner and who else?' So preservatives, sugars, corn substitutes, "the noble experiment" was formally when you work for people like that artificial colorings, and other additives brought to an end at 12:01 a.m. on Sep- you've got to have a little confidence." that most brewers resort to these clays tember 15, 1933, his trucks were already Over the course of the past ten years, (59 food additives have the U.S. Gov- loaded with Shiner, lined up as far as the about $200,000 worth of improvements ernment's seal of approval for use in eye could see and ready to roll. have been made to the brewery—Beal beer-making). And Shiner has stuck to These were the halcyon days of local says that more money has been put back the old-fashioned 30-day brew-kettle- .beers. At Prohibition's end, the U.S. was into the plant by the Ladshaw group than to-bottling routine rather than cut cor-

- home to 750 breweries, and few markets was reinvested in the previous 50 years. ners with the one-week quickie process were more than countywide. Spoetzl and More efficient bottling and labeling favored by some companies. his customers viewed Shiner as their equipment has been installed and storage Spoetzl also remains pretty much a own, homegrown business, with no capacity increased from 22,000 barrels to handwork brewer, employing 42 workers thought of territorial expansion. Indeed, 60,000. With more beer on hand, the at tasks ranging from stirring each batch the owner-brewmaster put a premium on company has been able to reach beyond to pounding corks into kegs. Forty- the personal touch when it came to busi- its self-imposed territorial limits, and two—that's exactly as many people as ness, traveling field-to-field with a keg of Shiner is now sold as far north as Dallas, there were on the payroll ten years ago, Shiner iced down in his Ford coupe, as far east as Port Arthur, and as far and some of the' number have been at passing out free beer to all hands. It was south as the Rio Grande Valley. Spoetzl for nearly 50 years. Hybner says the company's first advertising cam- John Hybner, who started at Shiner as he'd rather pay workers than buy ma- paign. He limited distribution to a 75- a tank scrubber and is now one of chines. mile radius of Shiner, and within that Spoetzl's ten stockholders, was dis- To keep life on the bottling line from market made Shiner the beer of choice. patched to Chicago's Siebels Institute of becoming an intolerable bore, workers By the mid-'60s, however, the national Technology in 1971 to learn the brewing are rotated about the plant from job to beers were making their move on Texas art. When he returned to take over as job; to keep supervisors from losing and the .failure rate of small breweries brewmaster the next year, the stock- perspective, top management puts them was on the rise. The Spoetzl family holders decided it was time to tamper to work on the line alongside everyone (Kosmos had died in .1950 after achieving with Shiner's dark-brew formula as a else. And while pay may be better at the his dream of establishing Shiner in a first step to widening its appeal. Over a San Antonio breweries, Shiner em- new, well-equipped brick brewery, six-month period, Hybner gradually ployees get, to drink all the beer they which still houses the business) decided added more corn grits to the mix to pro- want on the job. ("I try not to have a that it was time for new management. In duce a lighter taste and color. Tex:as' beer before noon," Speedy Beal dutifully 1968, a group of seven investors, headed beer-drinking age had just been lowered tells interviewers as he excuses himself by. New Braunfels businessman Archie to 18, and, recalls Beal, "We were going to get another morning pitcher for his Ladshaw, bought the brewery. Three after the younger drinkers, especially the guests.) other investors bought in later, bringing c.-)Ilege crowd. Our own sales showed While there is a new aggressiveness in the number of Spoetzl Brewery stock- that young people were not drinking dark Shiner's marketing strategy, at heart it's holders to ten. beer." Hybner admits to the influence of still based on Kosmos Spoetzl's idea of The shift in ownership aroused con- another marketing consideration—dark "a smile, a handshake and a bottle of cern and suspicion in Shiner (even beer fills you up after three or four glas- beer." Shiner management devotes more though four townsmen were among the ses, so customers weren't buying as of its promotional budget to chili cook- new owners), but things have worked out much of it as a lighter blend. (In 1975, offs, watermelon thumps and rodeos happily. The Ladshaw group launched a Spoetzl quit brewing its spring batch of plan of deliberate, well-conceived dark "bock" beer; the only dark beer it (Continued on page 17)

The bottling line: a good place to work Stacking the yeast filters

4 JULY 7, 1978 Another lo of beer Tribulat of a Shiner distribut

here in the next two years. But there could probably expect a tap by the first By Matthew Lyon have been a few setbacks already. An of the year, since the Union could do the Austin account with the Foodland chain was necessary work over the Christmas In the middle of Austin's old lost some time ago, and more recently break (and without Shiner's assistance). warehouse district, at the corner of San the draft account Shiner had with Ar- The work would have involved little Jacinto and Fourth, the Shiner beer dis- madillo World Headquarters went by the more than the removal of an existing tributor for the city shares a small, low- boards when the bar at the famed music wine spigot—"one that's not selling very roofed building with an ice cream dealer. hall decided to give the tap-space to well," says Bartow—and its replacement Inside, piled a little higher than a person Coors. with a three-tap beer station. But Shiner can reach, on a half dozen or so wooden `.`They decided that Coors could do didn't hear from the Union, so Leggett pallets arranged helter-skelter around them more good," says Leggett. "I felt called in January, only to find out that the concrete floor, sits a good portion of like that was pretty damaging to us." there still wasn't a new tap. There still the Shiner stock. Austin drinks about 30 More troubling to Leggett than either isn't, and Leggett last spoke to people in kegs and 2,000 cases of Shiner a month in of those lost accounts (Shiner has Bartow's office a month ago. the summer, about 20 percent less in the roughly 200 accounts in Austin), is his "We felt they'd given us a verbal winter—enough of a business to keep failure over the last nine months to get a commitment in early December to put us three people employed and a truck and a tap in the bar at the University of Texas in," Leggett says. Not so, says Bartow: van running. Union. The Union's Texas Tavern has 12 "They were damned confused if they In one corner of the warehouse, Bob taps serving ten brands of beer, but no ever thought that." Leggett and Marshall McHome run their Shiner draft. Last September, when "One of our highest priorities is to business out of a single-room office big Leggett first approached the Texas carry all the Texas beers," says Bartow, enough for only one desk. Every inch of Union about adding a Shiner tap, he was but he admits .they don't. The Texas

wall space is covered with Shiner stick- told that , the bar wasn't equipped to ac- Tavern vends Lone Star draft (Lone Star ers and signs, old reports, photographs, commodate another brand but that the is owned by Olympia Brewing Company, yellowed letters and notes, and signs for matter would be investigated. Olympia, Washington) Pearl draft (Pearl three Mexican beers they handle. Because the university is a public in- is owned by General Brewing Company Shelves stand cluttered with samples of stitution and Shiner's is the only Texan- of San Francisco), and a host of national Shiner paraphernalia—glasses and mugs, owned brewery in the state (and because brands like Budweiser and Schlitz. T-shirts, baseball caps, and company the Texas Tavern provides a prime "Falstaff is now trying to sell itself as a patches. Through a door is a similar market), Leggett says, "We felt we had a Texas beer," said Bartow. "So that's office used by the ice cream distributor, right to be in the Texas Union." something we'll also have to consider." I in whose trash basket the day I visited Leggett wrote to Union manager asked Bartow when he thought Shiner was a six-pack of Coors empties. Frank Bartow in. November to inquire might get a tap in the Union. He said he "It's a struggle," says Leggett, 24 again about the installation of a Shiner didn't know. years old. "We're an underdog. I feel tap.. Bartow replied that he was "defi- "I feel like they're just dragging their sometimes if we could just get a little nitely interested" in including Shiner feet over there," says Leggett. more of the market, we'd do a whole lot draft at the bar. Leggett says that in a Fact is, Shiner doesn't sell well better. But we're just kinda always sittin' subsequent conversation in early De- alongside other brands wherever it is, on the edge." cember, he told Bartow that Shiner due, Leggett thinks, to a negative image He and McHome took over the Austin would do anything within the bounds of clinging to the beer from the days when it business ten months ago and Leggett is the law to help the Union make more tap was brewed dark. Six years ago, how- hopeful that they can double Shiner sales space available. Leggett was told he ever, Shiner added corn to its brewing THE TEXAS OBSERVER 5 formula to achieve a light, conventional taste and hue. A former employee of the U. S. Brew- ers' Association who has conducted numerous blind taste-tests over the years told me, "Even the worst kind of Sholtz Garten snobs couldn't ever tell the dif- ference between various American beers." It's no surprise, then, that an ap- pealing image is the way to an appealing sales record, and here advertising makes all the difference. Bob Leggett spends about $250 every other month on advertising, about all he Hi, I'm Coors. can afford. Spoetzl Brewery matches every dollar he puts into ads, but when Leggett wanted to spend more than $250 Daily Fly me. several months ago for space in the Texan, the brewery, he says, told him to hold off. "We both spend about as much as we can afford," he says. Still, $500 By Margaret Watson states], is perceived as premium." every other month—or $3,000 a year— Austin Where Coors is not avilable, she adds, even if that were the ad outlay for every Stop by the bar in any major Texas Dobbs House serves Michelob or Bud- market in the state, can't begin to com- airport for a cold draft beer and what do weiser. What about all those people the pete with the image-building power, of, you find? The taste of Golden, Colorado, new supersaver and peanuts fares have say, Anheuser-Busch, which spent a that's what. added to the population of air travelers, guestimated $2 million on advertising in and what about the influx of less-than- No Texas airport serves a Texas beer! Texas last year. premium vactioners? Dobbs has Great ghost of Sam Houston! In a state plugged into Travelpulse, a nationwide Promotional paraphernalia—clocks, that is proud of everything Texan, the survey, to check changes in the air travel lighted signs, napkins, bottle openers, thirsty traveler will not be offered a market, but results have not yet been coasters, and emblazoned glassware— Shiner, Pearl or Lone Star. Coors seems compiled. comes cheaper for the big brands, and is to have a lock on the airport market. too often beyond the reach of indepen- Coors is all you can buy at Houston In- Service is why ATS chose to serve dent brewers with limited budgets and tercontinental, Houston Hobby, Coors at Hobby airport in Houston, says capital. "I've got the same glassware as Dallas-Fort Worth Interregional, Dallas manager Nicholas Drossos. "The anybody else, but I can't offer it at the Love Field and San Antonio Interna- [Coors] fellow gives good service. I used same price," says Leggett. "Schlitz by tional. Things are not much better to serve Budweiser but the service was itself could keep a glass company in elsewhere in the state. In Austin, your lousy, so I switched." business." choice is limited to Coors on draft or Sky Chef manager Edwin Wojcik "The brewer can't afford to supply us Lowenbrau in bottles; El Paso's Interna- based his selections on local tastes. with enough clocks and lighted signs," tional airport serves up only Coors and "Here in El Paso people don't drink he says. And neons, at $120 each, are %.$ Michelob on tap. Texas brands very much ... Probably 80 simply too costly for Spoetzl to provide What's going on here is that our city percent of our customers are from back at all. "Yet virtually every Coors place in governments and airport authorities East and want to try Coors." He tried town has a neon." have sold out Texas, leasing out flying selling packaged Texas beer for a while, Leggett finds it particularly hard to field bars to out-of-state corporations he says, but it just didn't go over. compete with more established beers for much more concerned with standardized The question still unanswered is why a share of the draft market. "Keg sales, purchase orders and the uniform product the bars in Texas' six biggest commercial bar accounts, are terribly hard to get code than with diversity of taste and airports serve only one brand of draft into," he says. Because of keg beer's lim- pure old Texas pride. beer. Standardization and convenience, ited shelf-life, bars prefer to stock brands Three national restaurant firms have says Simpson. "You can see its easier to that sell quickly. While Shiner kegs are carved up the territory: Airline Terminal deal with just one distributor." Austin the lowest-priced in the local market Service, a Buffalo, New York, conces- Dobbs House manager Don Buchanan ($22.75 per 15.5 gallon keg, compared to sionaire for racetracks, airports and ball elaborates: "We want to maintain a con- $24 and up for the national brands), parks, serves Hobby; Sky Chef, a wholly sistency in the quality of presentation." it's usually sold over the bar at the same owned subsidiary of New York City's Draft beer equipment is expensive, price as other beers (roughly 55 cents a American Airlines, serves El Paso Inter- one brewers' lobbyist argues, and state glass). Retail price equalization hurts national; and Dobbs House, a and federal regulations prohibit dis- Shiner sales because bar flies order the Tennessee-based restaurant chain tributors from providing retail outlets bigger-selling beers if they're going for owned by Squibb Corporation, has taken with any gear. But Mike Glover, general the same price. The same situation ob- over the state's other five municipal air- manager of Coors of Austin, Inc., told tains in retail package sales. ports. the Observer that the cost of adding The Fourth of July weekend tra- Why does Coors dominate? Dobbs another draft beer is "next to nothing— ditionally offers the brewing industry a x4: House marketing representative Barrie all you need is another regulator for the sellers market. But for Shiner in Austin, Simpson says her company's exclusive CO2 tank, which costs $16 to $20." predicts Leggett, "It will just kinda be sale of Coors is based on air passenger Dobbs House denies it has entered business as usual." studies—some paid for by Coors—made into any agreement with Coors guarantee- Observer staff assistant Matthew in 1975. Most air travelers, Simpson ex- ing exclusive sales rights. "That would Lyon, a student from Amherst, Massa- plains, are "upperclass businessmen who be illegal," Simpson is quick to point out. chusetts, has written for The New York desire a premium beer, and Coors, with Beer industry representatives rally Times and the Berkshire Eagle (Pitts- ... its limited availability [it's sold in only 16 around the "that's illegal" refrain. They field, Massachusetts). tg.',:tom% 6 JULY 7, 1978

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.0 CD At Austin's Mueller Airport bar: It's a one-brand show. :40.W.frni% are eager to cut off any talk about the alleged that "in 1972 Schlitz agreed to company serves. And Dobbs House's little extras that a bar might receive for pay to Dobbs Houses, Inc., over a one- bar in the Austin airport charges $1.50 handling one particular label to the ex- year period $125,000, purportedly for for a Lowenbrau that is bottled not in clusion of others—things like free equip- market research and consulting services, Munich, but in Fort Worth. You can get ment, glasses, neon signs, or God's when Schlitz knew the money paid was the same stuff around town for much mercy, cash bribes. Yet sources in- an inducement to obtain additional rep- less. Similarly, ATS charges $1.10 for a volved in beer marketing assure the Ob- resentation of Schlitz products." This is Coors at Hobby airport, which is way server that wholesalers offer such "in- the single largest payment cited. Schlitz out of line with the going rate for the pale ducements". all the time—"It's common is accused also of paying Dobbs Houses brew in other Bayou City bars. Only Sky practice," one said off the record. No another $91,760 in 1973. and $30,000 in Chef in El Paso, peddling Coors draft at one would talk specifics. 1974. 70 cents a glass and Michelob at 90 • Why the reticence? Well, grand juries Airport restaurant and bar franchisees cents, is within the range of prevailing around the country have been poking are supposedly subject to closer public prices. In short, airport authorities allow into beer industry trade practices, and scrutiny than private retail chains be- concessionaires to gouge the flying pub- some of the regional and local breweries cause their contracts are typically lic, and in direct violation of contract squeezed out of markets by exclusive negotiated with city governments. Texas terms. contracts and other illegalities have been airports open their facilities to bids by As far as offering a Texas beer, or taking the big boys to court. The heat is concessionaires, and they award con- even another choice of a national beer, on. Both Anheuser-Busch and Coors tracts to the firms offering either the managers backpedal as fast as they can, have been convicted of doing business claiming that they pursue a hands-off ap- , highest minimum guarantees or the high- outside of the law. But what has est percentages of gross sales. There is proach to the choice concessionaires everyone in the industry jumpy is a Wis- no priority for Texas bidders. Contracts offer the public. "I never try to push consin grand jury's indictment last are negotiated for specific periods, rang- products," says James Alderson, March of Joseph Schlitz Brewing Com- ing from 10 years at Hobby, Austin, and Dallas-Fort Worth director of properties. pany on 743 very _specific counts of in- Houston Intercontinental to 15 years at When asked if he thought that one-beer ducement payments, alleged to have San Antonio and Dallas-Fort Worth. The beverage lists were in the public interest, been made between 1972 and 1977. El Paso airport has done business with Charles Weaver, director of concessions The massive indictment, which is its concessionaire—the Sky Chef at Houston Intercontinental, said he documented with check numbers and Corporation—since 1942. Airport con- "wasn't aware that Coors was the only ledger-book lists of amounts and payees, cessions produce big revenues—Dobbs beer sold there. Maybe they make some is the culmination of a three-year inves- House pays Dallas-Fort Worth Regional sort of arrangement for reduced rates, tigation by the grand jury. It cites Schlitz a minimum annual guarantee of $2 mil- but I don't know anything about that." for having conspired to offer everything lion, or a percentage of gross sales (17 He added that the airport contract did from mugs to money to win exclusive percent of beer sales), whichever is not specify that more than one brand beer accounts all over the country in res- greater. should be available. taurant chains, hotels, race tracks, chain It's not as if the public protectors are Do airport managers ever get com- liquor stores and—yes—airports (from without any say over who does business plaints about serving Coors, and only '72 through '76, for example, Schlitz is and under what terms in airports. For Coors? "Well, I never had anyone ask alleged to have made 90 different pay- one thing, city officials retain some dis- for Shiner," laughed Thomas Rafferty, ments totalling $238,291 through its cretionary power over price setting— San Antonio airport manager. It seems f s, Chicago distributor to the concessionaire city directors of aviation or, sometimes, almost un-American not to have a choice at O'Hare Airport). One charge of local airport managers, review concessionaire in beers in city-sanctioned airport opera- interest is that Schlitz had a "sales prior- prices to insure they are reasonable or tions. Especially since a mere $20 could ity" agreement with the City of Arlington "commensurate with prevailing prices" provide that freedom of choice. But for the business at the Texas Rangers in surrounding areas, according to most since concessionaires have made it baseball stadium—and, sure enough, contracts. But the public watchdogs Coors, they've made it yours, at least Schlitz is the only beer poured in the don't seem to be doing much of a job. All until the contracts run out. El stands for Rangers' fans. five Dobbs House-run bars charge $1.25 The Dobbs House chain figures prom- for a draft Coors—about double the Margaret Watson is an Observer staff inetitly in the Wisconsin indictment. It is going rate in the taverns of cities the assistant. avawanum041'wmtvat, THE TEXAS OBSERVER Beer as elixir and leveler

By Nelson Allen Corpus Christi Somehow in this day of massage parlors, fern bars and discos the beer joint remains, basic in its approach, an honest sanctuary from the frustrations and inanities of the civilized world. Beer joints offer a little pleasure and a little mercy and don't charge an arm and a leg in return. There are thousands of them scattered across Texas. Some are fancy, some run down; some are infamous and some unique. Texans like beer and they drink a lot of it. Forget that Hollywood cowboys always order up whiskey. Of course Texans drink whiskey as well as scotch, gin, vodka, and wines from Thunderbird to champagne. Some also do a little marijuana, cocaine, and Mexican brown heroin. But almost every Texan has a weakness for beer. Its popularity here might have come about because for years the law horses in the forefront of an advertising first two rows in the beer lockers at most discouraged the sale and consumption of budget that could support the entire small groceries and quick stops. Initially hard liquor. In some parts of the state the junkie population of New York. "Bud" successful after expanding statewide, Baptists would allow their fellow citizens is basically a middle-class honky beer. If Coors now seems to be slipping in most to drink only beer or wine (well, you drink it you probably haven't got major Texas markets. This is probably liquor, sometimes—if they showed up at much imagination. It comes in a pretty due in part to the controversies bars in command of their own bottles), red can and Vance Packard taught us surrounding the Neanderthal policies of the thinking being (I guess) that beer was long ago about the importance of packag- Coors's founding family and the diffi- less an occasion of sin than a vodka ing. culties they've encountered because of gimlet on the rocks or a frozen daiquiri. Schlitz (in Texas pronounced "slitz" their hiring practices, but the likeliest Or maybe beer boomed because of the or sometimes "sleetz"): Pretty much the impediment to sales is a can that is scorching blister-like Texas summers same as Budweiser except Schlitz is the impossible to open. With the noble that make the search for cold beer and a beer preferred by blacks. Blacks won't intention of cutting down on litter from dark, shady place to drink it seem only drink local beer for the same reason they throw-away pop-top rings, Coors rational. Or, then again, perhaps we can wouldn't wear dungarees until recently designed a can that requires you to cut thank the 19th century influx of (with the coming of crushed denims and your finger and then stick it into your Germans, those good people who settled quilted French jeans). To a black man, beer in order to open the thing. They've the central farmlands and brought with drinking a Pearl or a Shiner is a bit like since returned to the rings, but are still them their love of stout. Whatever, beer eating a watermelon. Malt liquor is also suffering from what had to be one of the is undoubtedly here to stay. popular with blacks. For a while, Colt 45 worst marketing booboos since the More to the business at hand, beer is a was hot but now Schlitz Malt Liquor Edsel. People who don't like Coors say it common denominator that cuts through reigns supreme, possibly as the result of a tastes like "water." Despite all this, cultures as varied as any zoo population. smart advertising campaign directed to- Coors still has a sizable and loyal Ranchers, oilmen, assembly-line ward the black culture. The blue and following. And the Colorado brewer workers, hippies, rednecks, frat rats, silver cans are a knockout. keeps pushing—just try and order some- blacks, Mexicans, pickup drivers and Michelob: Nothing but a Schlitz in a thing else in an airport lounge. Cadillac buyers, socialites and bums all funny shaped bottle with a pretentious Falstaff: Falstaff used to sell as well as drink beer. However, the brands they name. People who drink Michelob all Pearl and Lone Star, but now it's almost patronize designate ethnic, economic, drive Buicks but wish they could afford impossible to find. Whatever happened and social status almost as sharply as the Cadillacs. to Falstaff? cars they drive. Coors: For years, Coors, like Levi Miller's: Also used to do fairly well The passing of Texas' many small Strauss and Cadillac, didn't have to and is also hard to find these days. It's independent labels in the wake of the advertise. It was one of the most sought still bottled in clear glass. Schlitz-Budweiser sweep is lamented after commodities in the state. GIs, con- Jax: This used to be the beer among elsewhere in this issue. The task here is struction workers, and fraternity boys chicanos. They've since shifted their to note that beers are not so much differ- would all pay double for a smuggled case loyalties elsewhere and Jax isn't doing so ent as they seem different. What follows of Coors. A lot of people claimed it was well. In my opinion, Jax always suffered is a list of commonly available beers in great beer but the real reason for its because of an insistence on using a bile- Texas and what it means to drink them. popularity was its unavailability. In colored label. Budweiser: The King of Beers, ho ho those years Coors was pretty uppity. Lone Star: Strictly for tourists and ho, beechwood aged, ho ho. You've seen You had to drive to Far West Texas to get yankees. Willie Nelson and Freddy Fender Ed McMahon and those funny-looking it. Coors demanded, and usually got, the drink it because they get it free. Lone 8 JULY 7, 1978 Star has surrounded itself with so much TOLLOW-U hype lately that almost no one could r drink it without feeling like an ad. Lone Star even tried to copyright "longneck," a term that's been around as long as I can remember. Several years back Rolling Stone had a Lone Star bottle on display in a glass case in its San Francisco offices. And that shows where the magazine was at. Pearl: For a while Pearl tried to follow along, picking up the few country & western stars and chili cook-off sponsorships that Lone Star hadn't already gobbled up, but, nevertheless,

Pearl remains a real Texas beer and one n of the best. Pearl was recently sold to an tma Ett 14t eccentric Californian (Obs., Dec. 30, Har

1977) and it remains to be seen how the ia \st change in ownership will affect its Oliv future. Shiner: The last Texas independent and the favorite of health food fanatics and bohemian farmers. It has suffered some reverse snob appeal—people who drive Honda Civics with green American The changes at Pearl eco-flag decals swear by it—but it's also the favorite of the occasional hermit or mountain man who straggles in from the By Margot Beutler and Christy Hoppe wild as well as quite. a few serious beer Austin Pearl is one of four brewers in the coun- drinkers who appreciate Shiner's ability When Paul Kalmanovitz, the 72-year- try authorized to produce and market the to survive and its reliance on natural in- old owner of General Brewing of San deplorable Billy Beer. Initial sales were gredients. You have to get used to the Francisco and the crustiest, most color- buoyed by customer curiosity, but now, taste, which at first is like venison (if ful tycoon in the American beer indus- says Frank Spinoza, Pearl's vice presi- mainline beers are like hamburger) but try, bought Pearl Beer from Southdown, dent of marketing, "Billy Beer sales are it's real beer and quality has a way of Inc., early this year (Obs., Dec. 30, flat at best." Although there are no plans finding customers. 1977), he didn't hesitate to shake things to drop Billy, production is way down. Heineken: Currently the Mercedes up, and changes have been issuing from GBC has yet another card up its Benz of beers. The favorite of cocaine the historic old brewery in. San Antonio sleeve—Luckenbach Beer. The brain- dealers, rock 'n' roll stars, and rich like suds from a dropped can of beer. child of Houston ad man Earle Littman, hippies. Naturally it's also the favorite of The changes started in the upper re- Luckenbach was a brand in search of a would-be cocaine dealers, would-be rock gions of the flow chart, where Pearl's top brewer. Littman contracted with Carl 'n' roll stars, and would-be rich hippies. six managers under Southdown were re- Albert Luckenbach of San Antonio, It's popular partly because it tastes more placed with Kalmanovitz men. (Rumor grandson of the tiny Hill Country town's like American beer than most imports has it that when "Mr. Paul"—that's what founder, to capitalize on his famous and partly because of the hypnotic, underlings call him—came blustering name. He then consulted with several psychedelic green bottle. A real snob into the executive dining area at the beer conglomerates before cutting a deal beer. Pearl brewery, some of the lame duck with General Brewing to produce and Other non-Mexican imports: For the managers turned the microwave oven on distribute a brew under the Luckenbach most part they're all impulse beers for full blast in hopes of short-circuiting the label. If the new product gets the go- the occasional shopper looking for a pacemaker the Californian wears.) change. Occasionally you'll find some With management firmly in hand, joker who hates American beers and Kalmanovitz set about the task of mak- swears by Lowenbrau or Tuborg. He ing Pearl the flagship of GBC's far-flung usually drives a '56 Jaguar. Or an ex- brewing operations. Indeed, Pearl is serviceman who drinks Japan's Ashihi slated to serve as the company's chief for nostalgic reasons. Then there are the brewing facility and as the distribution poor slobs who believe that imported center for all GBC brands in the lucrative beer and a candlelight dinner will leave Southwestern and Southern markets. them with a night to remember. And The new owner plans to increase Pearl's there are those who drink Guinness already respectable production volume Stout to prove how macho they are. That (annually, 1.7 million barrels) and to ex- stuff could make a turkey vulture throw pand the line of Pearl-produced brands. up. Besides the currently marketed Pre- Mexican beers: It's astounding to mium, Pearl Light, Country Club Malt ahead from the Texas Alcoholic Bever- those of us who used to foray across the Liquor, Texas Pride:Jax, and Kassel, the age Commission, it will hit the market border and part with a peso or two for brewery will soon handle such GBC this stuff that some people are willing to late this summer, raising to 19 the labels as Lucky Lager, Piltzer, Goetz, number of brands produced by GBC. pay for it this side of the Rio Bravo. and Pale Near Beer. ❑ Particularly obnoxious are those who In addition, GBC has shown itself will- Margot Beutler and Christy Hoppe are (Continued on page 19) !'.ng to take a fling with gimmick brands. Observer staff assistants.

THE TEXAS OBSERVER 9 Come now Tower, Clements, Baker, Bush and other Republican show breeds The Underdog Papers

By Douglas S. Harlan reer, his polls show him leading his lished a broad base of bipartisan support. Democratic opponent in early summer. Former ambassador 'Ed Clark, an LBJ San Antonio The lead over Congressman Bob ally, is once again clfairman of the sena- As members of the second party in a Krueger is substantial, and Tower parti- tor's campaign, an,d, as in previous state of one-party dominance, Texas Re- sans are confident it can be maintained. Tower efforts, there is a growing level of support for him among liberal Demo- publicans are accustomed to being "It will be a tough and hard-fought underdogs. In most races this year, their crats. Although there is as yet no or- campaign, and we're taking nothing for ganized liberal movement akin to the status has not changed, but the invigorat- granted," says John Davis, Tower's di- "Democratic Rebuilding Committee" of ing vision of major November upsets has rector of campaign organization, "but we the first two Tower campaigns, some lib- brought new life and vitality to the party are confident of success." at all levels of competition. Republicans erals apparently prefer what they see as Tower's staff and volunteer leaders Tower's honest conservatism to are convinced that the general election don't sell Krueger short: "We know he's vote may prove that the underdog is the Krueger's untrustworthy and unpredict- tough," says one key Tower supporter. state's "most popular breed" this year. able opportunism. "In fact, he's not just tough, he's mean. Herewith a mid-summer prospectus for We know it, and we're prepared for it." the GOP. "I got to know Krueger too well during Tower has many strengths, not the the primary," reports a liberal activist The Senate race least of which is his 17-year incumbency. who supported the New Braunfels con- Still a young man by Capitol. Hill stan- gressman's primary :opponent, Joe Chris- U.S. Senator John Tower is long- dards, he is nonetheless ranked with the tie. "I don't trust the man. He's danger- accustomed to running as an underdog, Senate's most senior members, and his ous. Since we can't have Christie, we're but for the first time in his political ca- three previous campaigns have estab- better off with Tower."

10 JULY 7, 1978 Unlike most Texas Republicans years of campaign experience in the about the recent city bond issue in Dal- Tower has little trouble raising money. state. "They did it again this year." las, and he has developed a reputation Thus far he has raised about $2.4 million The "problems" facing the Democrats for arrogance that he did not have as a from some 40,000 contributors. Tower's were the candidacies of a number of member of the Legislature. Pauken has fundraisers are more apt to point with congressional hopefuls who Republicans had early success in fundraising ($88,000 pride to the high number of contributors thought would have been easier to beat: to date) and has pledges of suppport than to the $2.4 million figure, however. Lane Denton in Bob Poage's 11th dis- from party super-stars such as George The 40,000 check-writers, they say, pro- trict; Ron Godbey in Tiger Teague's 6th Bush, John Connally and Ronald Reagan vide a broad base of support unap- district; tarnished incumbent John to help raise enough to be competitive all proached by any Democrat for statewide Young in the 14th district; incumbent the way to November. office. Dale Milford in the 24th district; and Jack Burgess of Waco, the Republican Despite his strengths, Tower and his Dusty Rhodes in Omar Burleson's 17th who scared Bob Poage two years ago in people must heed their own advice not to district. Resolution came by way of de- the 1 1 th district, is running again. take Krueger lightly. Krueger is a strong feat for all four. Burgess's people are quick to admit that and tireless campaigner, and he is proba- Two districts look especially promis- they would have preferred Lane Denton bly the most skillful political image- ing for Republicans: the 19th, where as their Democratic opponent, believing maker in modern Texas history. Fur- George Bush of Midland (son of the pos- a conservative-liberal contest would thermore, he obfuscates and flip-flops on sible presidential candidate) faces Lub- work to their advantage in this basically issues when politically advantageous, a bock State Senator Kent Hance in a bat- conservative district. However, they recent example being his support of in- tle to replace the powerful 44-year have been encouraged and somewhat cluding the Lower Canyons of the Rio House veteran George Mahon, and the surprised by what one of them calls a Grande in the wild and scenic rivers pro- 21st, where former Gerald Ford aide "sizable liberal backlash" against Mar- gram. Like Tower, Krueger is a good Tom Loeffler of Kerrville faces former vin Leath, the establishment banker fundraiser, having raised $1.2 million so Democratic State Senator Nelson Wolff from Marlin who defeated Denton in the far. Unlike Tower, he has virtually aban- of San Antonio in the contest for the seat Democratic run-off. Liberals, apparent- doned his responsibilities in Congress to Bob Krueger is giving up. Both the 19th ly, prefer Burgess as a man of integrity to become a full-time candidate. Tower duti- and 21st districts are strongly conserva- Leath, whom they perceive as a typical fully puts in five-day weeks in Washing- tive and have Republican voting habits at vested-interest politician. If Burgess can ton, returning home to campaign only on the presidential and senatorial level. forge an effective alliance with the dis- weekends and during Senate recesses. Both Bush and Loeffler are good cam- satisfied liberals and maintain his own Krueger is taking dead aim at a base of paigners, and they have demonstrated conservative base, he could be one of the support Tower has enjoyed to the exclu- abilities as money-raisers. In addition, happy underdogs on the night of sion of other Republicans, including at- both had strong primary contests which November 7. tractive candidates like George Bush and helped build name-identification and at- In the 22nd district, Act III of the Dr. Paul Eggers: the Mexican-American tract dedicated volunteers. Ron Paul/Bob Gammage melodrama is vote. Although Tower has not carried Bush and Loeffler are the most likely unfolding. Paul, a Lake Jackson physi- most Mexican-American boxes, he has candidates to join incumbent Republican cian, held the seat briefly after defeating consistently received a high percentage Gammage in a 1976 special election, only of the chicano vote. Krueger believes he congressmen Jim Collins of Dallas and Bill Archer of Houston in Washington to lose to him later that year in the gen- can win by eroding Tower's base with next January, but both have their work eral election. He has not stopped cam- Mexican-Americans. In pursuit of that cut out for them. Bush must make peace paigning. Gammage, once a noted liberal goal, he has unleashed a strong personal in the Texas Senate, has moved de- attack on Tower, attempting to portray with the Reagan faction of the party which gave strong support to his run-off cidedly to the right and put himself on him as a racist. opponent, Jim Reese, the former Odessa more solid ground with his conservative "There's no doubt Krueger's attacks mayor who ran a close race against constituency. This is a seat Republicans are hurting us right now," reports a Mahon in 1976. And he must expand his could win, but Gammage's conservative Tower staff member. "This is an exam- geographic base of support from its pres- ploy seems to have lessened the danger ple of how mean he can be. He's also ent rather narrow focus in Midland. he faces. going around promising that he'll get Three other districts have hard- Mexican-Americans a lot of appoint- Loeffler must overcome a two-year ments from Carter, a promise he can't head start by Nelson Wolff, who so- working and able Republican candidates, but their chances were hurt by Demo- deliver on." lidified his support in many of the small cratic primary results. In the 6th district Krueger is shooting for 85 percent of West Texas counties of the district be- fore Loeffler appeared on the scene, and two years ago, Wes Mowery gave in- the Mexican-American vote. Tower's cumbent Democrat Tiger Teague a cred- people believe they will be able to keep he needs to find a formula to guarantee victory in the San Antonio portion of the ible challenge, but the Democrats' selec- at least 35 percent. Clearly, somebody's tion of conservative Texas A&M profes- plans will fall short, and the margin could district where Wolffs real political base lies. sor Phil Gramm in this conservative and be the decisive factor in the election. brass-collar Democratic district has se- After Bush and Loeffler, Republicans riously undermined Mowery's position. The congressional races place strong hopes on Tom Pauken, a In the 17th district, Bill Fisher of Abilene bright young attorney who narrowly lost is another able Republican disadvan- Results of the Democratic primary and a State Senate bid in 1976. Pauken is op- taged by the opposition's selection. run-off reinforced the underdog position posing one-term incumbent Jim Mattox Democrat Charles Stenholm is a Stam- of a number of Republican congressional in Dallas' 5th district, the seat for- ford farmer with broad appeal, but candidates, but, for the most part, their merly held by Republican Alan Fisher is likely to press him hard. In the enthusiasm for the fall election has not Steelman. Mattox was once thought to 24th district, Leo Berman was a credible diminished. be unbeatable, but his touted political challenger to weak incumbent Dale Mil- "The Democrats always seem to solve judgment has proved faulty. There are ford in 1976 and was prepared for a tough their own problems in the primary," says reports that he has alienated some of his (Continued on page 20) one Republican professional with 16 constituents with imprudent remarks

THE TEXAS OBSERVER 11 The Texas country boy standing behind Time

sive pulp, paperboard and building mate- • Time Inc., the publishing empire rials company that owns a million acres that Henry Luce launched 56 years of Texas timberland, merged with Time ago, is a $1.25 billion conglomerate to- in 1973 and has become its largest sub- day. Besides putting Time, Sports Illus- sidiary, accounting for a quarter of the trated, People, Money, Life and Fortune parent firm's 1977 sales and a third of its on the newsstands, it owns the HBO profits. Temple, chairman of the board of pay-television network, the Book-of- Temple-Eastex and head of Time's forest the-Month Club, a forest products firm, a products group, has just been named one mortgage banking company, and The of the conglomerate's two vice Washington Star newspaper. The com- chairmen, which appointment makes him pany also dabbles in films, television sta- a big timer indeed. Temple's voice on the tions, furniture manufacturing, graphic board of directors is no doubt amplified arts and even racquetball courts. Its by the size of his investment latest growth gambit is the making of a portfolio—he is one of the largest indi- $281 million bid for the Inland Container vidual owners of Time Inc. stock—and Corporation. the ownership of about 15 percent of the But the conglomerate's big money is in big company by two dozen members of its forest products group, which brings the Temple clan (including Arthur's son, us to the Piney Woods of East Texas and State Rep. Buddy Temple). The Tem- the rising star of Time Inc.'s corporate ples' share is roughly double that of the firmament—publicity-shy Arthur Tem- Luce family and makes them the chief ple of Diboll. Temple-Eastex, the mas- owners of Time.

Who's in step? He ain't heavy Lord, Ronald Reagan, who claims Tex- ans are "fed up" with a Democratic he's my brother administration and party "whose plat- • Asked at a meeting of the Houston form and performance are so clearly out Business and Professional Men's of step with the principles of this state Association how many blacks are on the and its people," has been raising cam- board of directors of Sedco, Inc., Repub- paign money for Republican state attor- lican gubernatorial candidate Bill Clem- ney general candidate Jim Baker. In a ents replied that he has not found a letter soliciting support for Baker, Rea- black qualified for his company's board, gan says Jimmy Carter "talked conser- but that he expects to someday. vative to get elected and now governs liberal," accusing the President of having If you think black business leaders "deceived" Texans. He says Texas were gladdened at that news, imagine Commerce Bancshares director Baker their happiness over Clements's promise has an excellent chance of defeating his to help small businesses by getting large, Democratic opponent Mark White be- same-industry corporations to adopt cause White's such a liberal, which them as "big brothers," giving them ad- shows how much Reagan knows about vice on how to run their operations. Texas politics. Baker managed Gerald Ford's 1976 general election campaign after Ford de- feated Reagan in a sometimes nasty fight Thanks for your support to improve the status of our state, and I for the GOP presidential nomination. mean that sincerely." Clearly, though, Reagan still covets that Comptroller Bob Bullock, who har- But such sweet talk hardly means the prize, and his eagerness to help Baker assed John Hill throughout the two have made up. Asked why he had shows that he's practicing one of his own spring gubernatorial campaign, said on been so hard on Hill during the cam- preachments: "Politics has been called the "State Capitol Dateline" radio show paign, Bullock said, "Well, I guess basi- the second oldest profession. Sometimes that he now intends to vote for the attor- cally I don't like him." Why is that? "I there is a similarity to the first." Former ney general in November and, if Hill is don't know. He's just kind of nasty to President Ford has also agreed to cam- elected, will "work with him in every me. It's just one of those things where I paign for Baker. way to improve the status of Texans and don't care for him at all." —Matthew Lyon

12 JULY 7, 1978 They were conspicuously absent from the guest list for the presidential audi- When President Carter saw color The special session may not be • ence, and it was only because Reyes • photos of 12-year-old police mur- agreed to present their arguments that dull, but it is going to be more der victim Santos Rodriguez of Dallas, Carter was forced to squarely confront drawn-out than anyone had expected, for reported State Rep. Ben Reyes (D- the Rodriguez issue. one simple reason—the electronic voting Houston), "He said it was one of the machine doesn't work. The old machine Carter denied a Dallas Times Herald most horrible things he had ever seen." has been gutted to make way for a fan- report—which inconveniently appeared cier version, but the new one will not be But whether Carter's reaction to the just hours before the meeting—that photographs Reyes displayed at a ready until next January. That means roll Drew Days, head of the Justice Depart- call votes will take at least a half-hour fence-mending meeting with Hispanic ment's civil rights division, had recom- officeholders in Houston last month pre- each, and there are about a dozen such mended no federal action in the case. votes on an average day. sages strong federal action against police But the activists are convinced the rec- misconduct in Texas remains an open ommendation was made, and attorney question—most notably in the Rodriguez Sandoval says that Bell's "personal case itself. interest" since the Houston discussion Carter promised that Attorney Gen- has taken the form of an in-house en- eral Griffin Bell would take a "personal dorsement of Days's tentative decision. interest" in the case as the July 24 dead- Times may change, but 73-year-old The Justice Department's main argu- • Bexar County Judge A.J. Ploch, line approached for federal prosecution ment for inaction, according to Sandov- of the boy's killer, Dallas policeman Dar- who is retiring this year, is not about to al, is that Cain has already been success- change with them. The Old Guard of San rell Cain. (Cain is serving a five-year fully prosecuted in state court. But, he state sentence for shooting Rodriguez Antonio no longer runs things, and Ploch claims, another officer implicated in the doesn't like the trend one bit, so the but could serve a life sentence if con- killing wasn't prosecuted at all, and victed on federal charges.) Democrat has announced his endorse- Cain's state sentence was not propor- ment of the Republican candidate for But the activists who have pressed the tionate to his crime. If no federal prose- county judge, an anglo, over the Demo- Justice Department hardest on the bru- cution occurs in the Rodriguez case, cratic nominee, Albert Bustamante. tality issue—such as LULAC director Sandoval adds, President Carter will Ruben Bonilla, San Antonio civil rights The judge is upset that Mexican- have alienated the constituency he came Americans are gaining dominance in attorney Ruben Sandoval, and Vilma to Houston to placate. Martinez of MALDEF are still skeptical. local government. "We've got to stop this thing of minority groups getting to- gether and electing a man," Ploch said, apparently unaware that, in Bexar County, anglos are the minority. The San Antonio Express-News termed Ploch's remark "racist," and there was a flurry of demands by Mexican-American leaders that Ploch resign. He rushed out to say that he had not meant to cast any racial aspersions: "What I meant by the term 'minority' is a small, radical group on the West Side," he said, a clarification that managed to double his jeopardy. As Oscar Moran, district director of the . League of United Latin American Citi- zens, said in a press conference, "Now, when the Mexican-American voters unite into a strong political force, we are labeled 'radical,' when in fact we are only exercising the one-man one-vote principle." It was all old hat to Bustamante, a po- litical moderate who had already been called "a Crystal City radical" by Ploch. "I couldn't dignify the judge's comments with a response," said Bustamante, whose already-good chances for election are enhanced by the flap. Will Ploch resign? "Of course not," said the oldtimer.

THE TEXAS OBSERVER 13

e •wr orrwt..y.n • •y J - p..t vio (Advertisement)

MALDEF

May 31, 1978 .01

President Jimmy Carter The White House Dear Mr. President: Fourteen Mexican American national conducted by the Community Relations Ser- leaders met in Dallas May 23 for the purpose tunity to change those perceptions and we vice on the use of excessive force; strongly urge you to do so. of formulating recommendations and a course • commit administration support for the Judi- of action to combat the rampant incidents of We look forward to your reply. cial Tenure Act which would institute judicial police brutality which are occurring daily on Atentamente, checks and balances and for the Civil Rights the streets and in the precincts of our cities Improvement Act which strengthens the civil Vilma S. Martinez and counties throughout the nation, a problem rights protections of individuals; President and General Counsel which you yourself acknowledged recently on MALDEF • your visit to Los Angeles. endorse the passage or strengthening of state civil rights laws; Other conference participants: This meeting in Dallas marked a new era for • prepare a memorandum to the governors Ruben Bonilla Mexican Americans, resulting in unprece- Texas State Director, LULAC dented unity and resolve of this diverse group. of all states encouraging them to establish Judge Jose Angel Gutierrez The political and philosophical spectrum re- human relations commissions with subpoena Zavala County, Texas flected the broadest possible range; yet•there power in order to investigate allegations of police brutality; and was unanimity because abuse of authority Honorable Paul Moreno cuts across all political and philosophical lines • direct the U.S. Commission on Civil Rights Texas State Representative and strikes at the core of our daily lives, our to schedule early and extensive field hearings Jose G. Garcia culture, and our dignity. on police brutality against Mexican Amer- State President for IMAGE, Texas icans. As a group, we adopted a series of recom- Roberto B. Pina mendations. Our most immediate and urgent Similarly, we as leaders of major organiza- Southwest Regional Office for Hispanic Affairs demand is for the Department of Justice to tions have made our own commitments to ac- U.S. Catholic Conference prosecute immediately in the Santos Rod- tion and we take this opportunity to acquaint Antonio Bustamante riguez case before the statute of limitations you with them. We have begun to: National Coalition on the Hanigan Case runs out on July 24, 1978. Further, we urge • form a national committee of Hispanic Reies-Lopez Tijerina that you publicly acknowledge your concern leaders and distinguished lawyers who will ar- Alianza de Pueblos Libres ticulate these issues broadly and for this issue by meeting with this group on this Ruben Sandoval comprehensively—our good friends Harry issue and convening a White House Confer- Attorney, San Antonio ence on Domestic Human Rights. McPherson and Jim Vorenberg have agreed to take on leadership roles in this effort; Rene Martinez In addition, we urge you and Attorney Gen- Dallas, Texas eral Griffin Bell to: • establish state-by-state lawyer referral Antonio Morales • panels calling upon individual attorneys, law exert strong moral leadership in acting on National Chairman, American G.I. Forum and giving public recognition to your adminis- firms, and local and state bar associations to tration's opposition to police abuse practices; cooperate; Judge Frank P. Hernandez Dallas, Texas • put local and state police on notice that • create state-by-state networks of com- Francisco Medrano abuse of authority will not be tolerated and will plaint centers to provide the friends and fam- Dallas, Texas be investigated and prosecuted vigorously ilies of abused victims with information on and expeditiously by the Department of Jus- legal and other technical resources; Roberto Medrano tice; • keep the Mexican American community Dallas, Texas • tighten the monitoring of the abuses of informed of our joint efforts by employing the local and state police; extensive grassroots communication re- MALDEF continues to work to combat police abuse. Won't you help? • direct the Department of Justice to study sources available through cooperating organi- zations; the options of withholding Law Enforcement Assistance Administration funds from those • send a delegation from our Dallas group to MALDEF call on the governors of southwestern, jurisdictions in which violations and abuses of 501 Petroleum Commerce Building authority have been documented; western, and midwestern states urging exam- 201 N. St. Mary's Street • direct LEAA to develop special programs ination of police practices within the respective states; and to combat police brutality at the local and state San Antonio, Texas 78205 • level; send a delegation from this group to Mex- Enclosed is my contribution of $ • establish a Presidential Commission on ico City to address the international press. Police Brutality; We should like to learn of your willingness Name • appoint judges who reflect the percentage to meet with us prior to June 20. Notwithstand- of the Hispanic population in the United States ing your comments made in Los Angeles op- Address and who are sensitive to issues of police posing police abuse, a feeling pervades our abuse; community that you and your administration ,city State Zip. do not care about our safety and our rights as • accelerate the nationwide study now being Make checks payable to MALDEF. Contributions human beings in America. You have an oppor- are tax deductible.

A Public Service Message from the American Income Life Insurance Co.—Executive Offices, Waco, Texas—Bernard Rapoport, Chairman of the Board

14 JULY 7, 1978 And any time anyone said anything on the Briscoe themes of fiscal restraint, limited taxation, or the need to keep government out of our lives—well, all right, now that's what we're here to hear. Much clapping. "We have experienced victory and we have experienced defeat," said Jess Hay from the dais, "and we now know, all things considered, victory is better." It was a statement, if not for the ages, at least difficult to refute. The Briscoe trib- utes had a nice ring, too, coming from Lt. Gov. Bill Hobby, Oklahoma Gov. David Boren, et al. Don't forget the telegrams, either, the one from Atty. Gen. John Hill—small applause for that—and another from House Speaker Bill Clayton. A tearful Janey, in her turn, charac- terized her husband's two terms in Aus- Jan Sprawls tin as a "love story," a tale of "a proud, a strong, a gentle Texan who loves this The last supper No, it was a night to dress up, an occa- state and the people who live within her borders. It is a story of a man who is a .really sion to clap hands and get happy and pay Maybe what the country Christian man, one who brought Chris- • needs is more $1,000-a-plate tes- off 70 percent of Dolph Briscoe's $1.5 tian principles to public office and enno- timonials for outgoing governors, if for million primary campaign debt. bled public service." no other reason than to give guys like Arch fundraiser Jess Hay, former Benny Ferguson jobs. Benny has a Democratic National Committee finance And: "For five and one-half years we teaching fellowship at North Texas State chairman, had billed the evening as "A have had tranquility and serenity in Tex- in Denton, where he's beginning a PhD in Time for Applause," and that the 1,200 as. We haven't been afraid of irresponsi- music, but he was parking cars June 16 at Briscoe backers provided, some 40 times, ble acts by the state government, we have- Dallas' Apparel Mart. It was the first including four standing o's, two each n't felt that government is prying or car-lot gig for Benny, who just moved his for Dolph and Janey. The Rev. S. M. snooping or dictating in our private lives, family here from South Carolina. "With Wright, sounding not at all unlike Martin because this man has respected individ- two kids and a wife at home." he rea- Luther King Sr., compared Briscoe's ual worth." soned, "you gotta do something." impact on Texas to that of "fert'lizer in And: "We have been encouraged to That something involved snuggling soil." The house remained still at this, quit mistrusting each other and have nine-passenger limousines between the the night's best line—you don't clap for begun to look at each other, each human odd Fleetwood from North Dallas and benedictions. Pity. Texas' junior man in being, as God's creation. So I think it has the Silver Shadow Rolls. For their oc- the Senate, announced as Senator Of- been the best time, and I think it has cupants, almost all of them immaculately Whom-We-Are-All-Proud Lloyd Bent- been a love story, of a man and this state coiffed and black-tie'd to the teeth—over sen, commented on the state's $2 billion and the people who live here. And like there, a brown suit! ah, someone to re- surplus and said, "I wish we had that in all good love stories, this one will never late to—this was clearly no night for the Washington." He got himself a nice end. This one is just to be continued." station wagon. hand. In his element and surrounded by sup- porters, the governor appeared rested, calm, confident, relaxed and happy. bear on Texas regulatory agencies, Ready to hit another campaign trail, if Texas ACORN grows whose decisions often hit the pocket there was one to hit. His speech, while Now that it has local affiliates books of ordinary Texans hardest. Prime far from revelatory—he did say he fa- • firmly. rooted in low- and targets will be the Public Utility Com- vored requiring a two-thirds vote of the moderate-income neighborhoods in mission, where ACORN delegations are Legislature to pass a tax bill—was un- reeled with a robust snap unusual for the Houston, Dallas and Fort Worth, Texas already a familiar feature of electric util- ACORN (Association of Community ity rate hearings, and the State Board of man. Organizations for Reform Now) is Insurance. Afterwards, he said he had no specific branching out—this month a state office The new local affiliate is intended to post-Austin plans, "but I'm not closing and another local chapter will set up introduce Austin residents—and business any doors or ruling anything out, either." shop in Austin. and government leaders—to the ACORN Does that mean he may run for office Mary Lassen, the ACORN staffer who brand of well-researched, outspoken ad- again'? will organize both capital city opera- vocacy on issues such as home insurance "You betcha," he said. tions, says the state office will help bring redlining and property tax disparities —John Dycus the grassroots coalition's influence to (Obs., Feb. 11, 1977, and May 12, 1978).

THE TEXAS OBSERVER 15 Going down the road Next session, legislators will have a mittee . chance to double their fun, since Hous- Looks like McGrew has cooked up a feeling good ton boosters have decided to throw their pot-boiler, too—the chamber of com- own legislative bash. The "Harris merce is putting on a lunch, and Foley's • During each biennial session of the County Weekend Organization" is cur- department stores is planning a style Legislature, business and civic rently at work to make every moment of show for legislative wives (and, presum- boosters of the Rio Grande Valley host the March 1-4 promotional visit one that ably, legislative husbands). What's willing members of the Texas House and members will remember always. more, the whole bunch will be guests at Senate for an all-expenses-paid weekend Investor-banker Walter Mischer, Ten- the rodeo, and there's some wild talk at the tip of Texas, all in the name of neco lobbyist Byron Tunnell and local about a group tour of the Houston Ship good will and good clean fun. Reports chamber of commerce director Louis Channel. Whoo-wee! How are you going are that it is a smashing ride, with mem- Welch are heading up the organization's to get them back to Austin after three bers whooping it up and carrying on as steering committee, while American days of this? Don't worry, though- legislators will when put on buses General Insurance executive Bud HCWO's "souvenir and equipment supplied with enough liquid refreshment Schauerte appears to be HCWO's chief committee" will undoubtedly come up to sustain them for the 600-mile round- doer. Exxon lobbyist Vernon McGrew is with an appropriate lure to get all the trip. chairing the itinerary and agenda corn- sports back on the bus.

Sugarland is a story of Texas and its prisons. Two men, one almost a boy, caught by time, circumstance, their own mistakes, and the law, must struggle with the merciless cruelty of the system and the guards at Sug- arland, and maintain their identity and sanity. As one of the characters in the book says, "Any prison takes away what man has always held most dear next to life itself, his freedom" and that "Sugarland might have had a refinement on the system: the way they try to break a man's spirit with back-breaking work ... it has to do with the failed glory of Texas. - This back- breaking work: picking cotton, sickling weeds, baling hay, six days a week, twelve hours a day, and being paid 10 cents a day. This was Sugarland. The story happens in the 1950s; it could as well have happened in the 1920s; and it happens still, today.

$7.50 ISBN: 0-914476-76-9 159 pages

"A success. . . An example of the new regionalism." —The Los Angeles Times

At your local bookstore or order directly from: Southwest Book Services, 4951 Top Line Drive, Dallas 75247, (214) 688-1591 or Thorp Springs Press, 3414 Robinson Avenue, Austin 78722

16 JULY 7, 1978

Shiner. . . from page 4 than to conventional, big-bucks media keeps you in touch efforts. Only one billboard celebrates the voca beer; the company buys no TV time, and by the best estimates it spends less than with the movement $50,000 a year on advertising. (To put that in perspective, consider that People in the U.S. and around the world are struggling to survive—eco- Anheuser-Busch, Coors and Schlitz nomically, politically, and culturally. WIN Magazine has been defining spent a total of $70,800 just on news- and exploring these struggles for the past decade. WIN tells you what paper ads in Houston last year.) "Where people in the nonviolent movement for social change are saying and more we go to sell beer, it's going to have to be importantly what they are doing. on a touch-and-touch basis," says Beal. Here are a few samples of recent WIN Features: "We can't rely on advertising [to estab- • "Artists on the Left" — a special graphics issue win lish our name]. We tried it twice. It cost • " The USA's First Urban Solar System and Windmill" Workers by Jane Wholex; us so much money and it didn't do us a • " The Overprivileged Underclass? A View of Affirmative Action" Cooperatives: A Model for Economic Democracy bit of good, because we couldn't afford by Ralph Reiland to have it national or regional. We just • "Cuba Journal" by Patrick Lacefielcl • "Union Busting at the Washington Post" had a spot or two on one station." by Chip Berlet • "Conspicuous Consumers in the Arms Market" So Shiner has been advancing beyond by Michael Klare and Dan Volman

its home territory incrementally by fol- Clamshell Sets Date lowing its reputation, establishing close At a time when so many forces are threatening our for New Occupation very survival, it is more urgent than ever to be in Might in Micronesia personal relationships with distributors Pacifist Witness and outlets, and relying on customers to touch with developments every week—news, analy- in Rhodesia sis, reviews, and much more. It's time you sub- spread the word. It all makes for conser- scribed to WIN Magazine—your survival guide for vative, hard-headed business, and it the 1980's. seems to work fairly well—sales are up by 36 percent over 1972, and Hybner says the owners are turning a profit, WIN PEACE AND FREEDOM THRL' NONVIOLENT ACTION though quickly putting nearly all the re- Name turn back into their brewery. (As a pri- Yes! I need WIN Street vately held company whose stock is not flEnclosed is $15 for one year of WIN publicly traded, Spoetzl does not have to ,Enclosed is $8 for six months of WIN City State/Zip disclose sales figures or other business data, though 1977 sales are estimated to WIN Magazine / 503 Atlantic Ave. / Brooklyn, NY 111217 be more than $2 million.) Managers are looking to the future en- thusiastically. Plans are afoot to increase capacity to 75,000 barrels this year, and it is hoped that Longview and San Angelo can be brought into the Shiner market. Spoetzl has even sold some beer to Nigeria, and there is guarded discus- Printers Stationers Mailers Typesetters sion of entering the South American market. And in a joint venture, the High Speed Web Offset Publication Press — Shiner company has just started produc- ing a house-brand beer to be marketed in Dallas under the "Schepps Xtra" label Counseling Designing by the Julius Schepps Wholesale Liquor company, a Shiner distributor. Spoetzl Copy Writing Editing has turned out an initial run of 20,000 cases of no-return bottles advertised as Trade Computer Sales and Services — Schepps's "Texas Shortnecks." Complete Computer Data Processing Services Market barriers While Spoetzl has better sense than to imitate the majors, it does have to go

head-to-head with them, especially when ••• •• • *P4OURA st:n n.witvt cc:L.:Ts Psen V1111.1 it tries to get into a new market. The 11131tg primary barriers facing Shiner are chainstore bureaucracy, limited shelf space, and national beer advertising. Increasingly, beer sales are made by chainstores, and that means Shiner IFILITURA executives have to make pilgrimages to 512/442-7836 1714 South Congress the regional headquarters of national food retailing firms just to get permission P.O. Box 3485 Austin, Texas 78764 to negotiate with their local outlets for display space. "What you're confronting with these companies," says Beal, "is a

THE TEXAS OBSERVER 17

Good books in every field computer system." It seems supermar- JENKINS PUBLISHING CO. ket executives don't like to mess with The Pemberton Press products not sold statewide, because John H. Jenkins, Publisher they foul up computerized billing and in- ventory programs. Fine Food Draught Beer Box 2085 411 Austin 78768 Outdoor Patio But it's after permission is granted from a retailer's regional office that the battle really begins. Says Speedy Beal: • "These national [beer] brand distributors will definitely fight for the cold spot space they've got on the shelves, be- cause there's only so much of it avail- able. Everybody [who is already on the shelf] is going to badmouth Shiner, say- ing 'It's just a fad. Don't give them any room.' " The national brewers know all about the limited shelf space in super- markets and do not hesitate to take ad- vantage of the situation. Beal explains: "The trend in the beer business has gone as the soap business has gone. You put Combining Future Technology with out more and more packages, different packages to fill gp the shelves, and that automatically is going to discontinue some of the space of the smaller brew- eries." A good example is Anheuser- Old Fashioned Diligence to provide Busch—in addition to putting Bud- weiser, Michelob, Busch Bavarian and Natural Light on the shelves in bottles and cans of various size, A-B intends to Professional Services for Today. introduce a dark beer, an ultra-premium beer, an imported beer, and a soft drink Austin • San Marcos • Lubbock that tastes like beer. But of most concern to Shiner is the advertising muscle of the nationals. Counting radio, TV, newspaper and bill- boards alone (about half a company's total promotion costs) Anheuser-Busch laid out $79 million for media last year, PRIME RIP and Schlitz spent $55 million. The big push in 1977 was on behalf of the brand STEAK names of "light" beers—Miller spent $16 million to advertise Lite, Busch spent $9.2 million on Natural Light, and LOBSTER Schlitz spent $13 million for Schlitz Light. Professor Mueller offered this comment to the judiciary committee: CRAP "Regional brewers are unable to obtain equal access to the television media. Be- cause they cannot purchase television time during choice periods of the week through either regional or national net- z- works, they must pay a severe penalty 7 for the time they are able to acquire compared to their national counterparts. In an advertising war, all the advantages go to the national companies."

Speedy Beal tells what it means to go up against big advertising: "When you're elican's watching the ball game, Miller is adver- tising beer, right? All over the whole United States everybody is watching hors Miller for about 30 seconds. So if you're Miller, you can afford to go ahead and send your beer to El Paso or somewhere, Austin, Corpus Christi, Victoria, Brownsville, Temple, McAllen, Port Aransas, Tucson because you've done a lot of preselling.

LEiNm Let's put it this way—the national brands DINE Station, San Antonio, Lake Tahoe ON CLUBRS EXPRESS with their millions worth of television

18 JULY 7, 1978 Elixir, leveler. . . from page 9 bartender who tells us that he's afraid to advertising have a big jump on you. I've somehow feel that a Mexican beer is serve any other kind of light beer for fear got a little granddaughter who would what's needed to round off a .Tex-Mex of being thrown through his front rather watch the advertisements than the dinner. In any event there are several window. All of this stuff should be shows!" Mexican beers worth noting. Carta thrown out the window but it's' probably Blanca, the best-selling, is usually the here for good. It's the perfect beverage first Mexican beer any American tries. for vitamin-popping, jog-jogging Amer- But, despite its competitive problems, Just the same, Dos Equis is the hippest icans paranoid about heart attacks and Spoetzl Brewery is holding its own. It south of the border brew. Years ago pot bellies. makes it, while much bigger firms go there used to be Tres Equis (darker) and Draft beer: No matter what anyone under, because it has chosen to stay rumors of Cuatro Equis. Bohemia and says, all draft beer tastes the same small. It's run by a classic, small busi- Superior get by, while the hard-to-find (except for San Francisco's Steam beer, ness management that is aggressive, con- Cruz Blancais one of the best. If you like and that's' not sold in Texas). People tent to reinvest profits, and willing to menudo , you can probably stomach drink draft beer because it's cheap and forego executive frills. The brewery also Corona. Pacifica isn't bad. (There's a you can order it by the pitcher. Few has had friends in public office prepared great beer hall at Pacifica's brewery in barflies are aware of the behind-the- to do a turn for small business—a 1971 bill introduced in the Legislature by Sen. Bill Patman of Ganado and Reps. John Traeger of Seguin and Tim Von Dohlen of Goliad reduced by 25 percent the state excise tax a brewer of less than 75,000 barrels of beer would otherwise owe; Spoetzl is the only Texas brewery that meets this qualification, and the tax break has meant an annual savings of about $50,000. In 1976, U.S. Rep. Jake Pickle of Austin helped pass a similar law to reduce federal excise taxes on small brewers, and this break saves Spoetzl about $80,000 a year. in ldw Ba

And, homely as it sounds, Shiner has d

kept itself small enough and in close Fre /

enough personal contact with dis- iss tributors and customers to have devel- tr oped lasting, old-time loyalties. In ex- Wa dy plaining his efforts to get Shiner into n

7-Eleven stores and chain restaurants, We Beal says, "You cannot afford to leave Mazatlan, worth a visit if you enjoy scenes combat (threats, kickbacks) out your smaller places. At present, our drinking beer, eating peanuts, and arm- involved in draft beer concessions, par- business is still the longntck bottle [67 wrestling Mexican accountants.) Tecate ticularly at large dance halls and percent of Shiner's sales]. We believe in is the most American tasting of the auditoriums. the smaller places where people come in Mexican beers. It's always served in a Supermarket beer: This is just a snotty in the evenings and enjoy a bottle of bright red can with a slice of lime, which beer." That's the market Shiner has literary term enjoying a current vogue. It is a nice touch. But if you really want to conjures up an image of a pot-bellied carved out for itself, and Spoetzl appears get into this stuff you ought to try some to be strong enough to find and serve it. drone in a T-shirt who drinks only of the more exotic Latin American canned beer by the case and watches brands like Nicaragua's Zulu, for exam- television. Actually, almost all beers, in- Will Shiner grow? Of course. Speedy ple. cluding the imports, can be purchased in Beal again: "There's no such thing in any The coming of the Lite Age: Probably supermarkets. kind of business as getting to one point the most important development in the Pabst Blue Ribbon: A good beer that and staying there. There's only one way beer industry of late has been the has somehoW avoided all of the hype of you go then—you fall back. You always marketing and success of low-calorie other brands. At the moment, it's a good have to keep some sort of volume in- beers. What isn't advertised is that low- beer to drink if you want to avoid the crease. I'm basing our growth on the rise calorie beer is also low on alcohol image created for you by the major in beer consumption each year. We'll content. Brewers have been trying to sell brewers. still be small in proportion to the majors, this stuff for years (3.2 beer was one of There it is. Remember the next time even if ten years from now we're at the things that made living in Oklahoma 200,000 barrels in sales. But if we've got you stop by a beer joint and order your in the '50s unattractive) and they've favorite that you're also standing for the beer to sell, there's no use keeping it finally found a way. Miller's Lite was the here at the brewery." what you believe in. You could try just ❑ first to strike the mother lode (all those saying "Gimme a beer," but that would health/weight conscious Americans) and probably confuse the barmaidperson, was quickly followed by Anheuser- who after all, isn't being paid to make Susan DeMarco, former co-director of Busch, Schlitz, Pearl and now Coors. decisions of such gravity. the Agribusiness Accountability Project Lite was also the first to come out with ❑ in Washington, is the author of two those new macho commercials where books on food policy. She lives in Austin, jocks inform us that we don't have to be Freelance writer Nelson Allen was last where she is writing a third book; she sissies to drink low-calorie beer. Then regularly employed by the Corpus also serves as a consultant on a federal Schlitz hired James Coburn (anybody Christi Sun. He had his first sip of beer- study of the agricultural extension serv- that walked into a real Texas beer joint from a ,bootlegged bottle of Red Cap ice. looking like that would probably get his ale-21 years ago this summer in'Enid, face rearranged) and now Coors sports a Oklahoma. THE TEXAS OBSERVER 19 GOP.. . from page 11 significance. The Clements people are focusing only on the positive, and they rematch this year. Milford, however, did are actively cultivating the support of not make the finals, losing to Martin former Briscoe backers. David Dean, Frost in the Democratic primary. In a Briscoe's campaign treasurer, is now departure from the normal rule, Ber- deputy campaign chairman for Clem- man's chances were better against the ents. Briscoe's son-in-law is supporting incumbent than they are against his vic- Clements, as is Briscoe's long-time part- tor. ner in the cattle business, Red Nunley. In the 14th district, 22-year incumbent Democrat John Young, tarnished by Washington sex scandals and plagued by Money alone can't beat John personal problems, was clearly vulnera- Hill, but money combined ble. Republicans fielded Joy Yates of Corpus Christi in the primary, but they with confidence can. Clem- gave little indication that her race was to ents is downright contagious receive serious attention. The opportu- nity did not escape the eye of Demo- in spreading his confidence. cratic state representative Joe Wyatt, however, who defeated Young in the run-off. Yates is now a decided under- "Project 230," aimed at the recruit- dog. ment of independents and Democrats in the small and medium-sized counties, is The governor's race already underway. Omar Harvey, Clem- ents's manager in the primary, is head- Nola Haerle, Bill Clements's campaign ing this "Independents and Democrats manager, has commissioned a poll, but for Clements" effort. He is constantly on the results are not yet in. "We don't have the road in a Winnebago-style con- to have a poll to know that we are under- veyance, taking leads on potential Dem- Relax, and take a break dogs," she says, but she is quick to point ocratic support from David Dean. for lunch or dinner, out that both Bill Clements and John Hill The Clements campaign has two simi- and watch the river were not the odds-makers' choices when lar ventures out on the road in mobile- they began their primary campaigns. home vehicles. One features the candi- go by. The It requires little exposure to Bill Clem- date himself in a barnstorming effort that drinks are ents to learn that he likes to win. And it kicked off in Uvalde. Another stars ample, and is not hard to get the impression that he Clements's winsome and campaign-wise the cheesecake finds winning all the more fun when he's wife Rita, who maximizes exposure by expected to lose. headlining her own show. These pro- is our own. We "I recognize how hard this is," he grams are part of Clements's drive to have sandwiches to says. "I recognize that I'm the underdog. "press the flesh': in rural, out-of-the-way seafood, from 11:30 But what I want you to know is that I'm counties during the summertime. After Labor Day, metropolitan Texas will re- until 11:30 every day of going to do it." That determination and single- ceive most of his attention. the week; open till mindedness are probably the most Clements hasn't restricted the hard midnight in the Metro characteristic features of the Clements work to the campaign trail. He is labor- Center, San Antonio, campaign, overshadowing the record ex- ing mightily to correct one of his most penditures for a Republican primary and apparent weaknesses—knowledge of Texas. the anticipated record-breaking general state issues— and is said to be studying a election outlays. broad range of state problems, seeking "Money alone can't beat John Hill this advice from a variety of professional fall," says a Republican with statewide sources. campaign experience, "but money com- All of this activity takes money, but bined with the confidence exuded by that Clements proved during the primary that campaign can. Clements is just down- he could get it—and spend it. However, right contagious in spreading his confi- fundraising slacked off after the primary dence. - as attention to building political alliances Doors are opening to Clements that took pre-eminence. have never been open to Republicans be- "We need to rev up the fundraising ef- fore. Trade associations are lining up to fort again," reports a Clements volunteer talk to him. State employees seek ap- with campaign finance responsibilities. pointments to brief him on issues and "Money is a constant fight. Nobody is problems. In Paul Eggers's 1970 guber- standing in line to give." Zbel natorial campaign, trade association rep- That is always true for Republican resentatives refused to return calls, and candidates, but despite the "constant 4kan9aroo the few state workers who dared to help fight," the Clements organization is de- did so in private places, far from the eyes veloping a plan that might bring in $3 to of those who should not see. $3.5 million for the general election cam- Clements has moved his headquarters paign. from Dallas to Austin and has set up Says a Clements planner: "That's a shop in the old Briscoe headquarters, a huge amount of money, but look what site with positive and negative symbolic the Democrats have spent. And re-

20 JULY 7, 1978 member that inflation has hit campaigns tablishment doesn't really have a lot commission and when it's not. The cur- harder than virtually any other kind of going for it right now. Mark White is it, rent commissioners are obliged to act on activity." and they may all pitch in to make him faith, he argues. He would act on knowl- With Clements's financing and hard- safe." edge, and his judgments would be pro- driving ways, the race for governor will Despite the caution and recognition of fessional. certainly be exciting. Cool and objective their standing, Baker's people are op- Poerner has become the fair-haired Republican analysts are confident the timistic. And, as one says, "If it can't be boy of the major oil companies, which potential for victory is there. As one ob- done this year with this kind of a candi- are treating Lacy like a leper. Despite serves, "It's a winnable race. There are date and this kind of money, then I'll fold the parsimony of big oil, Lacy has raised votes out there for either side to win." my tent and let others take the field." a modest amount of money and gotten. Republicans know their candidate trails Lieutenant governor: Gaylord Mar- his campaign off the ground. His contri- John Hill at the moment, but they have shall of Dallas is the Republican nominee butions have come from small, indepen- come to take heart from Clements's re- for lieutenant governor. He faces the dent oilmen and hard-core Republican mark, "We're going after it." problems that normally confront Repub- partisans. lican candidates for statewide office: no The bets are heavily against Lacy, but Other statewide races name-identification, no money, little free his commitment to the campaign and the time available for campaigning, and few level of his activity should let Poerner Attorney, general: Some observers be- people who care. The action is know he will have to work to keep the lieve Republicans have a better chance elsewhere. job. to win the attorney general's office than Most Texans will not remember that the governor's mansion. AG nominee Gaylord Marshall was the Republican Local and legislative races Jim Baker of Houston offers them an op- nominee for lieutenant governor in 1974, portunity they have never had before: a thereby making this year's race a In isolated spots around the state, Re- full-time, eminently qualified candidate Hobby-Marshall rematch. Unfortunately publicans are mounting serious with some name-identification, credibil- for Republicans and their candidate, grassroots challenges for seats in the ity in the state's "establishment" (with most Texans will not notice that Gaylord Legislature and for positions in county appeal, nonetheless, to "anti- Marshall is the Republican nominee courthouses. At their level, some of establishment" political groups), a well- come November. these races are as exciting as anything financed campaign, and an open seat to higher on the ballot, and if those in- Railroad Commission: Jim Lacy, an volved in them are successful, they could shoot for. independent oilman from Midland, is the "Add to all of that," says a Baker do more to build a truly competitive sec- Republican nominee for the unexpired ond party than Tower, Clements and staffer, "the fact that this is a non- term on the Railroad Commission. La- Baker combined. presidential year, that Tower will be cy's opponent is John Poerner, the Bris- splitting Democratic votes, and that Car- coe appointee who swamped Jerry Sad- Most incumbent Republican members of the Legislature appear to be safe, so ter's popularity continues to drop, and ler in the June run-off after Sadler fell you've got something really unique for just short of eliminating Poerner and his the party's attention is focused on win- us." other opponents in May. ning new seats. ART—the Associated Republicans of Texas—has pledged fi- Despite all the favorable ingredients, nancial support to at least 15 legislative Baker's people are cautious. They too candidates, 14 of whom have already re- know their man is an underdog, as is any Numerous local challenges ceived base contributions of $1,000 to Republican in a statewide race. for legislative seats and $2,500. Progress in the races will be mon- "I'm somewhat optimistic despite try- positions in county court- itored, and the candidates can expect a ing not to be too much so," reports a total of $3,000 to $10,000 each by Baker insider. "This is a low-visibility houses will do much to build November—sums that can be decisive in race to most voters, and it's hard to get a competitive second party. legislative elections. In addition, the their attention. But if we raise enough state party has a candidates' fund of its money, I think we will win it." own and will draw on it to help Republi- Baker's people are confident they can Lacy and Republican strategists were cans in races where financial support out-organize Mark White, but they also hopeful that Sadler would win the nomi- could determine the outcomes. know that as a Democrat "[White] nation, theorizing that enough money Races have been targeted all over the doesn't need that kind of an organiza- could then be raised to mount a "high state: in Beaumont, Houston, Lake tion." They are not confident they can visibility" campaign for the office. De- Jackson, San Antonio, Victoria, Corpus raise more money than the former secre- spite Poerner's win and a feeling that Christi, Waco, Fort Worth, El Paso, tary of state. Hopeful, but not confident. Republican chances are now signifi- Odessa, Floydada and Amarillo. Ed "We hear that he's having trouble rais- cantly diminished, Lacy is continuing to Emmett of Kingwood is an example of ing money," says a Baker staff member wage a vigorous, full-time personal cam- the kind of candidate the GOP is giving of White. "He borrowed a lot during the paign. In this he sets himself apart from special help. A graduate of Rice and the primary. And Briscoe's people are too Marshall and is generating talk of a LBJ School of Public Affairs, Emmett is busy trying to pay off Briscoe debts to "sleeper" candidacy. running for the Texas House against in- worry about White. At least right now." Some might say despite his oil back- cumbent Democrat Joe Allen of Baker is taking aim at the Mexican- ground (he would say because of it), Baytown. Emmett's practical political American vote, figuring he has more to Lacy has a sensitivity to consumer is- experience in Austin and Washington offer chicanos than does White. Baker's sues. He argues that at least one RCC lends him credibility, and his aggressive independence from the existing state es- member should be someone who knows campaign has raised a tidy amount of tablishment is a selling point that has the oil industry from the ground up. money and produced a corps of volun- elicited good response in the Hispanic Lacy believes his experience at every- teers. Alas, like most Republicans, Em- community. thing from roughneck to land man to mett is the underdog. But his momentum One of the things worrying the Baker corporate executive and independent is up, and Allen's is down. He thinks camp is the drubbing taken by Briscoe in operator will help him know when the they will pass before November. May. "The conservative Democratic es- industry is shooting straight with the County races around the state also

THE TEXAS OBSERVER 21 , N11,•■■■•••=11.M.M......

offer some partisan excitement, some in to popular belief, it is the Democrats in. unexpected places. Most incumbent Re- Texas who have access to the big politi- publicans are fairly secure, including cal money, not Republicans. The well- popular Harris County Judge Jon financed Republican is an exception, not Lindsay. Lindsay is opposed by former the rule. state representative Joe Pentony in one John Tower and Bill Clements should of the most important races involving a have enough cash for full-fledged cam- Republican officeholder. Julius paign efforts. Both will need it, Cleinents Neunhoffer, Kerr County judge, sur- more than Tower. Jim Baker will be far vived a strong Republican primary chal- back in the fundraising game, but com- lenge but is almost certain to be re- pared to previous Republican nominees elected. Neunhoffer is the senior incum- and perhaps to his Democratic -oppo- bent Republican official in Texas. nent, he should be sufficiently well- Most of the Republican excitement at funded. For other GOP candidates at all the county level revolves around Repub- levels, reaching the proper level of fund- THE COMMODORE lican challenges to incumbent Demo- ing will be a long and tedious task. To the HOTEL crats. In Harris County, Republicans are extent that they do not do so, their making a serious run at the county treas- On Capitol Hill chances will be reduced. Few of their urer's office. The incumbent Democrat, Democratic opponents will be hard- Owned by Texans. Run by a Texan. Hartsell Gray, is vulnerable. According pressed to raise what they need. 520 N. Capitol St., NW to a .knowledgeable Houston political Many Republican candidates are ac- Washington, D.C. 20001 observer, "Gray is thought to be bon- tively seeking minority group support kers. A polite word for him, I guess, which, by objective analysis, many of ANDEMSON &, COMPANY would be 'eccentric.' " Henry Kriegel, them merit more than their Democratic COFFEE the Republican challenger, is the Hous- opponents. Republicans are hampered in TEA SPICES ton city treasurer. Kriegel is considered this effort by their lack of knowledge .of TWO JEFFERSON SQUARE competent and, important in the context minority group politics and by the weight AUSTIN, TEXAS 78'731 of this race, stable. His chances are of habit and tradition favoring the Dem- 512 453-1533 good. ocrats. This fight for minority votes Send me your list. ART and the state party are keying on could be the turning point in a number of county offices as well as seats in the races at both the local and statewide Name Legislature. Final funding decisions level. Street have not yet been made, but up to 20 Its credibility as a competitive party candidates could receive support in such and a kicking, breathing, political alter- City Zip places as San Antonio, Houston, Austin, native for Texas is enhanced this year by Slayton, Tyler, Dallas, Midland, Odessa the number and quality of GOP candi- Bob and Sara Roebuck and Alice. dates and by the vitality of most of the "Alice" is not a misprint. With crimi- party's campaigners. In years past, it nal indictments hitting incumbent Dem- was thought that the effort put into cam- Anchor National ocrats all over South Texas, ART has paigns for other offices would hurt Tow- pledged to help Alfredo Cardenas, the er's chances when he was up for re- Financial Services Republican candidate for county judge in election. That thinking has passed. In Jim Wells County. "Underdog" is prob- fact, the party's strength up and down 1524 E. Anderson Lane, Austin ably nowhere more appropriately the ticket in some parts of the state will applied than to the Republican in this almost certainly enhance the chances of (512) 836-8230 race, but the party is trying to offer cred- all Republicans on the ballot. • bonds • stocks • insurance ible competition in places where Demo- If Texas Republicans win a significant • mutual funds crats have violated their public trust. number of races this year, two-party Even in Alice. • optional retirement program competition might soon become a per- Even, too, in San Antonio. Bexar manent working reality in the state. The County Republicans are drawing up Republican nomination would increas- }LUX plans for a full-fledged assault on the ingly be seen as worth having; politically courthouse, where opportunities have oriented young people could be expected PRJCE been presented by a district clerk who to consider the GOP as their home in RECOR,Ds MAG AZ INES got himself arrested on election night, a growing numbers; and more Texans district attorney who thinks it is justifi- would vote in Republican primaries. able homicide to shoot kids who tamper IN DALLAS: If things break right for the party in 4528 McKINNEY AVE. with campaign signs, a sheriff who thinks November, 1978 will go down as a 209 S. AKARD, downtown it's okay to have 19 relatives on the watershed year in Texas politics. Place RICHARDSON: 508 LOCKWOOD payroll, and a county commissioner who no bets. But watch carefully. (west of post office) thinks his $27,000 annual salary is for a "part-time job." As in most places, Re- Doug Harlan is a scholar in residence FARMERS BRANCH SHOPPING CTR. SW CORNER, VALLEY VIEW publican chances in San Antonio are di- on the political science faculty at Trinity rectly proportional to the money they University in San Antonio. A Republican IN WACO: 25TH & COLUMBUS can raise: candidate for Congress from Texas' 21st IN AUSTIN: Factors affecting the outcome district in 1972 and .1974, he served the 1514 LAVACA Ford administration as executive secre- 6103 BURNET RD. The single most important factor in taryof HEW and as co-chairman of the IN FORT WORTH: turning Republican underdogs into Presidential Task Force on Deregula- 6301 CAMP BOWIE BLVD. election-day winners is money. Contrary tion. (Ridglea Shopping Center)

22 JULY 7, 1978 VearcFuture

July 10, 17, 24, 31 / Mon. / Houston: The University of Houston sponsors a series of workshops designed for those in- terested in making a mid-life ca- reer change. Focuses on job- hunting skills. The $50 fee is tax- deductible. Information: write Public Contact, Continuing Edu- cation Center, 4800 Calhoun, Houston 77004. July 10 / Mon. / Huntsville: The Texas Board of Corrections meets to consider inmate affairs, per- sonnel, legislation, construction. Information: W. J. Estelle Jr., P.O. Box 99, Huntsville 77340; (713) 295-6371, ext. 259. July 13 / Thurs. / New Braun-

fels: The Texas Air Control Board r le considers Parker Brothers & il Company, Inc.'s limestone quarry m operations which are in violation nne of sections of the Texas Clean Air Da h

Act. At 9:30 a.m. An afternoon it session is reserved for public tes- Ke timony on the emission reduction plan offered by the firm. In the homes as required under federal UT's west mall and a panel dis- eluding selling one's first novel, district courtroom, Comal County law. At 10 a.m. in the West End cussion from 7-10 p.m. in the contracts and copyrights and ac- Courthouse, second floor. Health Center Auditorium, 190 Academic Center auditorium. In- quisition of an agent. At the Uni- July 13 / Thurs. / Austin: The Heights Boulevard. July 14, Ar- formation: (512) 453-5026. versity of Houston. Fee: $65. Public Utility Commission con- lington at 9:30 a.m. in the Com- July 21-22 / Fri.-Sat. / Austin: Scholarships available. For in- siders the application of Bartlett munity Center, Music Room, 2800 The Texas Election Code Revi- formation, write: Sherman Pease, Electric Coop, Inc., to change South Center. July 19, Austin at sion committee hears recom- Director SWWC, 4800 Calhoun, rates for Bell, Williamson, Milam 9 a.m. in the first floor au- mendations for revisions of elec- Houston 77004; (713) 749-1232. ditorium, TDH, 1100 West 49th and Burleson counties. At 9 a.m., tion contest laws, such as those July 28 / Fri. / Austin: The Sun- Street. 7800 Shoal Creek Boulevard. In- applying to vote recounts. For set Advisory Commission hears formation: (512) 458-6111. time and place, call (512) 475- The staff reports on the performance July 19 / Wed. / Austin: 2736. July 13 / Thurs. / Houston: The University Theosophists sponsor of several state agencies, includ- Texas Department of Health con- Environmental Awareness Day. July 21-22 / Fri.-Sat. / Houston: ing the State Bar of Texas and the siders certification of nursing Events include a noon rally on The Southwest Writers' Confer- Real Estate Commission. For ence features workshops and time and place, call (512) 475- this calendar is an information service for Observer readers. Notices panel discussions with published 1718. must reach the Observer at least three weeks before the event. authors on a variety of topics, in- —Vicki Vaughan

classified SUPPORT CAPITAL EYE. Send donations BINGO A FELONY? Send S.A.S.E. Taw, JOIN THE ACLU. Membership.$20. Texas to 1005 International Life Building, Austin Box 50667, Dallas 75250. Civil Liberties Union, 600 West 7th, Austin 78701. BOOK-HUNTING? No obligation search for 7870 I . BACKPACKING - MOUNTAINEERING - rare or out-of-print books. Ruth and John RAFTING. Outback Expeditions, P.O. Box IRISH TIN WHISTLES. Bb, C, D, Eb, F. McCully. ARJAY Books. (512) 263-2957. Rt. and G. Any three for $10 postpaid. Amster 444, Austin 78767, (512) 442-8036. 8, Box 173, Austin 78703. Music. 1624 Lavaca, Austin 78701. CHINESE BOOKS, greeting cards, NEW ORLEANS ON $8 A YEAR. The bookmarks, wheatstraw cards, silk weavings, Weekly Courier. 1232 Decatur, New Orleans, cassette tapes, posters, etc. The distributors LA 70116. TYPING. Can't do it yourself? Or don't have of Chinese publications in the South and the time? Professional typing at reasonable Southwest. For further information, write TEXAS FLEA MARKETS ASSOCIATION rates in Austin or by mail around the state:, Prairie Fire Bookstore, 3221 Main Street, DIRECTORY. Exclusive! $2. Box 0, Cor- (51 2) 477-5420. Houston 77002. sicana 75110. WANTED. Addresses of Texas artists and slides of artwork and hand-made goods. Will RECORDER PLAYERS. Looking for re- Classified advertising is 30g per word. Dis- sell in exclusive Galveston gallery to be orga- corder music? We have largest library in counts for multiple insertions within a 12- nized. Virginia Lukefahr, 116 Pompano West. Come in or send for catalog. Amster month period: 25 times, 50 percent; 12 times, Street, Galveston 77550. Recorder Co., 1624 Lavaca, Austin 78701. 25 percent; 6 times, 10 percent.

THE TEXAS OBSERVER 23

Postmaster: If undeliverable, send Form 3579 to The Texas Observer, 600 W. 7th, Austin, Texas 78701

IIIWAV ZOO EL:7 HANOR.IEXAS

-1.1 •

ALL POLICE RODEO

Sat. July 22, 7:30 p.m. followed by a dance with Smokehouse Dialogue Sun. July 23, 2 p.m. Adults $3; Children under 12 $1.50 Non-retumables return to be partisan. But unfair? It's an axiom Children under 6 free in the newspaper world that reporters Thank you for your article on the must give criticized people the chance to -- ty>"79Z5e, cflezaconn7 Gra 512272.4042 liquor regulation legislative subcommit- defend themselves. tee on non-returnable bottles (Obs., Mr. Worcester's statistics may be as March 3). Perhaps the publicity will help damning as they appear. The editors of FARM INCOME alleviate a problem we've had. is the the Tribune-Herald may, on the other As the coordinator of the litter control hand, have an explanation to offer. As a SAME portion of the hearings, I spoke with the former reporter and a professor of jour- in 1977-78 as it was in committee staff repeatedly, gathering as- nalism, I would put more trust in the surances that "everyone on both sides story if I knew that they had at least been 1974 has been notified." When the environ- asked. mentalists didn't show up, I put out a while the price we ALL Donald M. Williams pay is inflated by press release, citing the difficulties of Waco finding a compromise when all the data and statistics have been presented by 33% one side. Republicans misrepresented UP OVER 200% ON SOME FARM I have been speaking individually with I just recently ran across your article ITEMS environmentalists, industry representa- about the National Republican Congres- THE WE'D LIKE TO CHAN011 tives, and labor. I see no reason why we COST THAT TO KEEP sional Committee's press release pro- IIVIERYSOOY EATING cannot find a way to reduce litter and yet gram (Obs., Jan. 20). PRICE retain full employment and profits. The Not only did your article misrepresent solution lies in an awareness that Texas Cp11111 what the program is all about, the article FarmersLi% changes will be made, so we'd best all get was flatly incorrect. Anyone who has Union M together, face-to-face, and work out the ever seen one of our press releases could details. hardly state they are "gotten up to look 800 LAKE AIR DR. r WACO, TEXAS 76710 ■ 817 772- 7220 Ron Waters as if they were regular constituent mail- State Representative ings sent from the Washington office of Houston Democrats." If our intent were to misrepresent, I IF YOU ARE an occasional reader and hardly think we would boast their origin would like to receive The Texas Observer Where are the affluent? on the letterhead. regularly—or if you are a subscriber and In answer to John Kenneth Galbraith's The releases are not "bogus" and we would like to have a free sample copy or a challenge to contribute to the Allan are obviously not attempting to "dis- one-year gift subscription sent to a friend— Shivers-John G. Tower-John B. Con- guise" them. We list a contact on every here's the order form: nally thanks and requital fund (Obs., release, and are always anxious to an- SEND THE OBSERVER TO— May 26): I do not know of any Texas swer any question that may arise. liberals that are affluent or any affluent Just the fact that you note that Jim name Texans that are liberals. I suggest we try Mattox (D-Dallas) writes a regular col- street for about 75 people who can spare $10 umn for a Dallas weekly, emphasizes the each (more or less) to make up the $750 need of a program such as ours. I doubt city state zip for the library subscription fund. En- he ever tells his readers about any of his closed is my check for $10. actions which he fears may be unpopular ❑ this subscription is for myself. Hazel Bussell with them. But his constituents deserve ❑ gift subscription; send card in my name. El Paso to know about all his actions and votes, ❑ sample copy only; you may use my name. not just the ones he wants to tell them • • • • about. That is why we began the pro- ❑ $12 enclosed for a one-year sub. Unfair? gram. ❑ bill me for $12. • • • • If the Waco Tribune-Herald showed If his district is aware of his total rec- partisanship in allotting space and posi- ord and decides they like the way they MY NAME & ADDRESS (if not shown above): tion to stories about congressional can- are being represented enough to re-elect didates (Obs., Feb. 17), what kind of ex- him, then all is well. But they cannot ample does Harris Worcester set in mak- make a fair decision if they only know ing the accusation? His story gives not one side of the story—his side. That is one line to any rebuttal from the Waco why we feel compelled to tell the other editors. side. Everbody expects (and probably Kathryn Murray THE TEXAS OBSERVER 600 W. 7th, Austin, Texas 78701 wants) the Observer and its contributors Washington, D.C.

24 JULY 7, 1978