May 24, 1979

Energy

International

Tenneco discovers natural gas in Baltimore Canyon, but says it is too early to tell whether find is of commercial size; drill site, on block owned jointly by Tenneco and Aminoil USA, is about 2 miles from Texaco discovery of last August (M)

Fed grand jury charges Lance and 3 business associates conspired to file false statements, mislead Govt regulatory agencies and misapply bank funds to get $20 million in loans for their own benefit from at least 41 banks, '70‐78; charges they continued conspiracy after Lance became Budget Dir; 3 associates are Thomas M Mitchell, who served as trustee of Lance's personal finances, former banker Richard T Carr and former First Calhoun National Bank dir H Jackson Mullins; indictment follows 20‐month Justice Dept and FBI probe directed for most part by Fed prosecutor Edwin J Tomko; Lance denies charges; cites media pressure on grand jury; Mitchell and Mullins atty Erwin Mitchell and Carr atty Robert Schwind deny charges; charges mostly involve transactions already made public in repts by Currency Comptroller's office and SEC and '77 hearings before Sen Govt Operations Com; allege previously unknown business ties between Lance and Bill L Campbell, former Calhoun bank officer serving prison term for embezzlement; indictment also holds Lance caused National Bank of Georgia to make $260,000 loan to Carr and submitted false financial statements for loans through Thomas Mitchell after joining Carter Adm; indictment lists 218 ‘overt acts’ that allegedly furthered conspiracy; charges Lance and associates obtained funds for personal expenses, stock investments and Lance's unsuccessful '74 Georgia gubernatorial campaign by pattern of bank loans and overdrafts; notes overdrafts at Calhoun bank ran as high as $821,000 in '74; says 41 banks range in size from Northwest Georgia Bank to Manufacturers Hanover Trust Co; charges Lance filed false or misleading financial statements with Manufacturers, Chemical Bank, First National Bank of Chicago, other banks; charges Lance group cost National Bank of Georgia, Calhoun Bank and 3 northwest Georgia banks over $500,000 through interest‐free overdrafts and because banks extended risky loans and over‐concentrated their loans; Lance's career revd; nothing in indictment involves Pres Carter's family or Carter's pol campaign; Lance and Tomko pors; banks illus (L)

Volkswagen has begun $130 million investment program at its production plant in Puebla, Mexico; almost closed $80 million, financially‐plagued plant in '76; metamorphosis is part of dramatic turnaround experienced by Mexican private sector since Pres Jose Lopez Portillo took office in '76; '78 profits at Volkswagen plant totaled about $20 million, and '79 production is approaching record levels; GM, Ford and Chrysler have begun investment programs in Mexico totaling $620 million; Volkswagen de Mexico pres Hans Barschkis comments; illus; graph compares annual production and exports of Volkswagen Beetles in Mexico, '72‐78 (M)