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The defunct goat dairy corporation is being sued in 143rd District Court
by Reeves County for repayment of a $131,000 low-interest loan.
Dr. Reynolds was treasurer for the corporation, and Danny Reynolds was
consultant and acting manager for the goat dairy south of Pecos.
Although he was unable to recall what specific cash reimbursements to
his son were for, Dr. Reynolds testified that he knew at the time of the
Danny would bring him a stack of tickets, and they would go over them
together, Dr. Reynolds said. Those that he believed were legitimate were
paid, while others were not, he said.
Under questioning by Bob Scoggin, attorney for Louis Lively, Dr.
Reynolds testified that Danny came up with the idea for the goat dairy
in January, 1993. Many of the goats were purchased from Danny and his
daughter, Gabriela, Dr. Reynolds said.
Danny Reynolds was not one of the original stockholders because he had
previously declared bankruptcy, he said. He later acquired stock in
exchange for work he had done.
Dr. Reynolds said his 5,000 $1 shares of stock came from a $1,200
building he donated to the dairy, $3,650 in goats he purchased from his
granddaughter and $150 cash.
Another son, Randy Reynolds, held 10,000 shares, he said. Dr. Reynolds
said he didn't know if Randy paid cash or exchanged his legal services
for the shares, nor whether half the shares were held for Danny.
Danny and Elvia Reynolds are cross-suing several stockholders for
$100,000 damages in response to a letter they wrote to Reeves County
Judge Jimmy Galindo.
Scoggins asked Dr. Reynolds how he had been damaged.
"In reputation in this community," Dr. Reynolds said. "It has cost me
some personal business, as well as possibly some other aspects."
But he was unable to give a specific figure.
"I don't know how anyone can appraise damage to his reputation
accurately," he said. "I know it was at least that amount."
Dr. Reynolds said he has been in Pecos 42 years and has been much
involved in community activities. He has served on the Pecos City
Council since 1990 and was previously a school trustee for 12 years.
Asked if he went to the goat dairy to check on the condition of the
goats prior to May 28, 1994, Dr. Reynolds said that he had been
concerned about them.
"Some of the reports I was hearing was that they were in poor condition.
We had been trying to do something about it, but the managers we had
didn't have it completely corrected," he said.
Brad and Kimberly Larsen were on-site managers, he said. They left on
May 28, 1994 when several stockholders found the goats in poor condition
and work on buildings not progressing on schedule.
Dr. Reynolds said the building was delayed by indecision as to what type
to build and by a state inspection. One payment was made on milking
equipment, but it was not installed, he said.
He said it became
apparent to him that the project was not going to work and he
recommended at a June, 1994 stockholders' meeting that they sell out and
repay the county.
"That was voted down by other members," he said.
In August, Dr. Reynolds was replaced as treasurer and he attended no
further meetings, he said.
Dr. Reynolds said the $28,000 price of 80 acres of land with
improvements that he sold to the corporation was fair. Along with the
land, the corporation received rights to government subsidies on cotton
acreage in the crop reserve program that amounted to $2,240 per year for
six years, he said.
Danny's responsibility at the dairy was for buildings, and Kimberly
Larsen was responsible for the goats, Dr. Reynolds said.
But Danny testified that he consulted with Larsen about the goats'
health and purchased medication for them. Many of the reimbursement
payments were for such medication, he said.
His testimony was interrupted for lunch. Judge Paul McCollom said he
hoped to complete the trial by 2 p.m.
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"No tax increases has been proposed in our 1997 budget," said Galindo,
who has maintained the 57.916 cent tax rate per $100 valuation first set
by county commissioners five years ago.
However, the county ran deficit budgets during the first three years of
the current tax rate, and Galindo stated that if spending would have
continued the way it was, it would have meant a 25 cent tax increase.
"We have reduced spending in the general fund that is supported by
property taxes by more than $800,000," he said. The fiscal 1997 budget
estimates total tax collections at $1.858 million, based on a 92 percent
"We avoided a tax increase last year and now going into 1997 we proposed
a budget that will not require a tax increase," Galindo said. "We're
Right now in the eighth month of 1996, the county is $300,000 under
budget, in comparison to last year, according to Galindo.
"When you look at the expenses for last year and compare it to this
year's, we're under-budgeted and we're still providing the same
services," said Galindo.
"I believe it's a major accomplishment that we are $364,000 under budget
in comparison to last year's budget," said Galindo.
Effective tax rates for Reeves County have been calculated and
published, according to a report from tax-assessor collector Elfida
The effective tax rate - the amount needed to raise the same amount of
funds this year as in last year's budget - has been calculated at 67.525
cents per $100 in valuations.
However, Galindo said "We don't use the effective tax rate," during this
week's regular session of commissioners court.
The effective rate is just a comparison rate, he said.
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Fisheries Research Biologist Dr. Gary P. Garrett and Management
Biologist Bobby Farquhar met with Balmorhea residents Tuesday evening
for town gathering to outline the project for townspeople and listen to
the community's response to it.
"This is a great opportunity to clean up the lake," Garrett said during
an interview Wednesday afternoon, while adding, "If the community
doesn't want to do it, we won't do it."
The project was a popular one with resident present at Tuesday's
meeting, winning over 23 votes. Five voted against the scheme.
"I can do this without the city's permission," Garrett contended, "but I
don't like to do business that way."
Dealing with a species that has been placed on the Endangered Species
list can be, "expensive," and troublesome, said Garrett, who was the
mastermind behind the Balmorhea State Park's Cienega project, that
enlisted the help of 13 state and federal agencies along with local
officials and townspeople.
A desert wetland was created in the state park to aid in the survival of
the Pupfish and Gambusia, while at the same time allowing farmers to
continue to use water from San Solomon Springs that is also home to the
"We want to fix that problem (endangered species in the lake), but while
we're at it, let's make the fishing better," said Garrett. "Let's do as
many things as we can at once."
The current idea derives in part from a TPWD project, entitled, "The
Dumb Bass," program, which is a statewide monitoring activity of the
Garrett said the study revealed that there are bass that are difficult
to catch, which are the ones that reach larger sizes, and there are,
"easy-to-catch bass," including the large-mouth bass native to Texas.
The department created a hybrid of the two types and decided that
Balmorhea Lake could use some added attention, as, "the fishing has
gotten worse in the last 10 years."
"Balmorhea will be the premiere lake," said the TPWD representative.
The first step of the plan consists of basically, "killing the lake." It
will take about two years for the project to be fully completed.
Garrett said that the "downside," to the project is, "fishing will not
be any good for two years," while adding that fishing can resume in the
Spring of 1998.
During the first step, officials will, "draw the lake down as low as
feasible," and then apply rotenone, a harmless chemical, "specifically
designed to kill fish."
The killing would be done to rid the lake of sheepshead minnow, which
has been responsible for the depletion of the pupfish, and carp. The
toxicant only affects gill breathing animals and works instantaneously,
The dead and dying fish will be removed and TPWD personnel and biology
students from various Texas universities will be contacted to aid in the
removal and study of the project.
The lake will be restocked in the fall of 1997 with 29,000 catfish, 200
Bluegill and 300 Gizzard Shad, which will be of legal size for fishing
the following spring. At which time, 40,600 native Large Mouth Bass,
Florida Large Mouth Bass 17,400, which studies revealed are difficult to
catch, and 300 more Gizzard Shad will be set free in the lake.
Channel Catfish will be released in the Fall of 1998 and the following
spring, 40,600 native Large Mouth Bass, 17,400 more Florida Large Mouth
Bass and 29,000 White Crappie in the Spring of 1999.
The final step includes the discharge of 29,000 more White Crappie into
Balmorhea Lake, for a stock total of 219,300 fish, worth $100,000, in a
During the process Garrett said he hopes to implement other projects
like an, "observation deck for bird watchers," and reiterated that it's
going to, "take a lot of work."
"There are a lot of opportunities to make it a desirable spot," for
tourists and area residents, Garrett added.
"community involvement is also necessary," a Balmorhea Chamber of
Commerce member added.
Funds for the project will be redeemed from monies paid to the TPWD by a
"fish kill," that occurred East Texas. A company was fined for spilling
chemicals into a natural watering hole, killing a large of amount of
Also present for Wednesday's gathering was Carlos Colinas-Vargas,
principal of an urban planning and management consultant firm of Austin,
who was gathering information for a community study.
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Bailey said the National Weather Service called again this morning to
warn him of flooding across the highway, but he said traffic was light,
and it was not necessary to close the road.
"We had a lot of rain," he said.
More than 5 inches of rain was reported in the mountains Wednesday
afternoon, the NWS said.
Bailey measured 1.2 inches at his home in Fort Davis during the night,
and a steady rain continued this morning.
Jody McElroy said gauges at their ranch 25 miles west of Balmorhea in
Jeff Davis County recorded 2.2 inches the past two days. Balmorhea had
.80 inch for the past 24 hours, she said.
The NWS gauge in Pecos caught .91 inches, bringing the September
rainfall total to .95 and year-to-date to 8.89.
Showers and thunderstorms are expected to produce rainfall heavy enough
to trigger flash flooding through Friday in the some sections of the Big
Bend area, extreme West Texas and in the mountains, the Associated Press
reported this morning.
Forecasters posted a flash flood watch for the area.
Showers and thunderstorms are forecast for most areas of West Texas
through Friday. Clouds will be increasing from the east on Friday.
It will be partly cloudy and cooler across North Texas through Friday.
Isolated showers and thunderstorms are possible through this evening in
South Texas. Clouds will be increasing on Friday.
Lows tonight will be in the 50s and 60s in West Texas, the 60s in North
Texas and in the 60s and 70s in South Texas.
Highs Friday will be in the 70s and 80s in West Texas, the 80s across
North Texas and in the 90s in South Texas.
Some patchy areas of light rain and scattered showers dampened areas of
the western Permian Basin, the Guadalupe Mountains and in the Davis
Mountains early today.
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About 1:03 a.m. today, Police Patrolman Orlando Franco discovered the
glass door located at the west end of the American National Insurance
building, at 317 W. Third St., had been shattered by an unknown object.
He and other officers then checked other buildings in the city and found
43 more sites with similarly damaged property.
Owners at only three of the 44 sites have filed complaints with the
local police department. Police Chief Troy Moore the those who have
filed are American National Insurance, Pecos Insurance, located at 117
W. Second St., and Needlworks, 241 S. Oak St.
"We're not sure that they (the damages) were all done last night," said
Moore. "But we're very interested in (investigating) it," he added.
Most of the damage was along Second and Third Streets, but sites all
across town reportedly were hit.
Locations that incurred bullet or pellet shots to windows or glass
doors were: the Red Bluff Water Power Control District office, Dr. Mike
Pharoah's office, Security State Bank, Cattleman's Restaurant, Sonic
Drive-In, Greyhound Bus Depot, Beauty Center, Quik Lube, Iglesia
Emmanuel Church, Cut and Corner, Panaderia Pecos and weight building
next door, Pecos Senior Citizen Center, Pecos Valley Grain, Style Shop,
Thrift Shop, Hubbs, Napa Auto Parts, Hollywood Boulevard, Elks Lounge,
J&L Motors, R&R Transmissions, Taylor Flowers, Texas Equipment, Four
Seasons, Kentucky Fried Chicken, Sunny's Grocery, Lee Lumber and used
vehicles at Colt Chevrolet.
The location of vacant buildings with damages are: 701 W. Third; 702 W.
Third; 100 block of South Oak Street, next door to Fonville's Jewelry;
corner of Third and Oleander Streets; the old Sears building in the 300
block of South Oak Street; 1008 W. Third; formerly J&L Motors, 1911 and
1701 West Third; 1920 W. Third and the old cable office building in the
700 block of South Cedar Street.
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"Our philosophy, (is) that we can deliver this with a smile and a
positive attitude," Matta said.
With the first aspect of that theory in mind, Matta started up West
Texas Financial Services, Inc., the first and, currently, the only
locally-owned finance service here in town three years ago, located at
508 E. Third St.
Gaining experience while a loan officer for the Security State Bank in
the 1980s and as manager of Ben's Spanish Inn for 13 years, Matta began
his venture in May of 1993.
In May of 1995, exactly two years after forming his first business, he
and Ortega partnered into Desert Rental and Sales. "We expanded to
include furniture, appliance and electronics sales," he added.
Prior to expanding, Matta conducted his study and went so far as to
count vehicles that trafficked through East Third Street, which was an
important point in making before posting the newer business venture next
to his financial service.
"In a one-year period, we've broken our own projection," said the
co-owner. "All our goals and projections have been met," thus far, he
He stated that he and his partner anticipated on making at least one
sale a day, "but we're averaging about five (sales per day)."
When they went into business two years ago, Matta said his hopes were to
provide small loans to the community with a better attitude, better
service and make the company's policies fit the local needs.
The office has been manned by Matta, Ortega, Aida Contreras and
part-time employee, Monica Navarette.
"Our idea paid off," said Matta whose past work included 14 years on the
Pecos-Barstow-Toyah school board. "Lots of hard work and long hours,"
has produced some 850 clients.
"It looks like that's what the local community wanted," he added.
"To date, we insist on personally handling every transaction, in order
to stay in touch with the customer," said Matta on the financial
Even after adding Desert Rentals, "Ray and I still handle most of the
customers personally and we insist that everybody be greeted when they
walk through that door," Matta said.
Two more employees were hired to aid in the operation of DRS, one to
help out with the office work and another with the delivery, which is
Currently DRS is working with 350 accounts, "and we expect, before the
end of the year, for that number to increase to 500," Matta added.
"Everything has been running well," Matta said, "and since we want to
provide the customer with what they want," the store keeps a slew of
catalogs on hand for customers to choose and purchase items that are not
available on the floor.
Providing a better line of furniture and appliances at reasonable costs
was the idea behind the DRS endeavor said Matta.
"We have a variety of repayment plans," he added, "and we hope to expand
the showroom in the future," to include, "a larger bedroom showcase,"
and appliance displays.
For the near future, Matta and Ortega are busying preparing the store
with a wide selection of Action Lane recliners and rockers, which
they'll be offering at a, "buy one, get second free," option.
Imminently, the partners are looking at establishing a, "full service
grocery store...within the next 15 months," said Matta. He said it would
be built on the east side of Pecos. "Traffic is extremely heavy on East
Third Street," Matta said, where the only grocery, Popular Thriftway,
was located before being destroyed by fire in 1992.
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Mayme B. Ellison Hathorn, 76, of Rosenberg died Monday, Sept. 9.
Services are scheduled for Friday at 10 a.m. at Graeber Road Church of
Christ in Rosenberg with burial at Greenlawn Memorial Park in Rosenberg.
Allen Hahn and Rocky Whitely will officiate the services.
She was born on March 30, 1920 in Beasley, had lived in Pecos and was a
member of the Graeber Road Church of Christ.
She is preceded in death by her parents, Henry Ellison and Sallie
Survivors include her husband, Vernon V. Hathorn of Rosenberg; five
sons, James "Jim" Hathorn of Richmond, Douglas "Doug" Hathorn of Pecos,
Robert Hathorn of Rosenberg, Howard Hathorn of Abilene and Mark Hathorn
of Abilene; two daughters, June Mendez of Rosenberg, Salley Whitely of
Rosenberg; three sisters, Nevaleen Stern of Rosenberg, Nona Johnson of
Pasadena, Mary Ruth Davis of Alvin; three brothers, Henry "Willie"
Ellison of Camp Verde, Az., Marvin Ellison of San Antonio, Lloyd Ellison
of New Braunfels and 17 grandchildren.
Memorial contributions may be made to Bandina Christian Youth Camp, c/o
Graeber Road Church of Christ, P.O. Box 667, Rosenberg, Tx. 77471.
Davis-Greenlawn Funeral Home in Rosenberg is in charge of arrangements.
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Services are incomplete for Aletta Mae Koerner Nunnally, 73, who died
today at the Pecos Nursing Home.
Martinez Funeral Home is in charge of arrangements.
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PECOS, September 12, 1996 - High Wednesday 90, low this morning 63.
Rainfall in last 24 hours, .91 inches. Total for September, .95 inches.
Year-to-date 8.89 inches. Tonight:Showers and thunderstorms are expected
to produce rainfall heavy enough to trigger flash flooding through
Friday in the some sections extreme West Texas. Lows tonight will be in
the mid-60s, highs Friday will be in 80s.
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not be published, broadcast, rewritten for broadcast or publication or
redistributed directly or indirectly in any medium. Neither these AP
Materials nor any portion thereof may be stored in a computer except for
personal and non-commercial use. The AP will not be held liable for
any delays, inaccuracies, errors or omissions therefrom or in the
transmission or delivery of all or any part thereof or for any damages
arising from any of the foregoing.
Copyright 1996 by Pecos Enterprise
Division of Buckner News Alliance, Inc.
324 S. Cedar St., Pecos, TX 79772
Phone 915-445-5475, FAX 915-445-4321
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