McCain will visit Pottsville before General Election

Republican Presidential candidate John McCain will visit Pottsville on Monday, Oct. 27, at a last-minute campaign rally, according to the McCain campaign Web site and a local Republican Party source.

McCain will host a rally at Martz Hall in Pottsville from 3:30 until 7 p.m.

It is the first visit by a General Election candidate for one of the two highest offices since a 2004 visit to Pottsville by Vice President Dick Cheney. Sen. Hillary Clinton visited northern Berks County during the Presidential primary campaign season.

Tickets for the rally are available at two local locations:

In Berks County:

Berks County Victory Center

5001 Perkiomen Ave. (Bus. Rt. 422)

Exeter, PA 19606

Hours: 10am to 9pm Daily

In Schuylkill County:

Advertisement

Schuylkill County Grassroots Center

217 North Center St.

Pottsville, PA 17901

Hours: 9am to 9pm Daily

Obviously, the Arizona Senator believes Pennsylvania voters will play a key role in determining this year's General Election winner on Nov. 4. On Wednesday, Republican Senator Sam Brownback (Kansas) was in Schuylkill Haven, just minutes north of Hamburg, at a McCain rally at Penn State-Schuylkill.

Pennsylvania is viewed as a critical state on Election Night with both McCain and Democratic candidate Barack Obama campaigning vigorously in the Keystone State. Also on Wednesday, Gov. Ed Rendell asked Obama to return to Pennsylvania to solidify his standing with voters here.

Sen. Rhoades dies from crash injuries

State Sen. James J. Rhoades has died as a result of injuries he sustained in a car collision in Monroe County Friday night. He was 66.

Rhoades served as State Senator in large portion of The Item's readership area. His 29th District contains Albany, Tilden, Perry, Windsor and Heidelberg townships and Hamburg and Shoemakersville boroughs in Berks County, and also covers all of Schuylkill County.

The senator was seeking his eighth consecutive term in Harrisburg. He is opposed by Democrat Peter Symons and Independent Dennis Baylor of Tilden Township.

Here is a link to the Breaking News story on the BerksMontNews.com site. For more details, read this week's Item.

Holden, Dent comment on bail-out bill

There were conflicting votes coming from U.S. Representatives covering the Northern Berks County region. Democrat Tim Holden voted against a "bail-out" twice this week while Republican Charles Dent voted for Friday's bill.

Each Rep. issued a statement following the vote. They are here. Also, look for a more well-formed story in next week's Item.

Holden: "The section of the bill dealing with the financial crisis the House of Representatives voted on today was the same bill I voted against only four days ago. The issues I found most troubling were not changed.

(1)The bill now spends over $700 billion of taxpayers' money and we don't even know if this is the actual cost. It could cost taxpayers even more;

(2)The bill does not have limits on salaries paid to CEOs of bailed out firms;

(3)The bill allows foreign governments to dump their toxic assets on the U.S. Treasury;

(4)The bill establishes a Financial Stability Oversight Board and a Congressional Board. However, these boards have no real authority to halt, delay or alter any decisions, only critique;

(5)The bill only says that the President must submit to Congress in 2013 a revenue bill that recoups from the financial industry the taxpayers' net losses. This bill should automatically enact revenue increases.

The financial crisis we now face is due in large part to the incompetence, arrogance, and overall greed of Wall Street CEOs. We should not be voting to reward their bad behavior! Unfortunately, I do not believe this bill addresses the root of the problems facing our financial institutions. There are other alternatives. For example, former FDIC Chairman Bill Isaac, who was chairman during the S&L crisis, has laid out a number of ideas which include: (1)the FDIC should issue net worth certificates; (2) the FDIC should insure bank's general creditors against losses, not just depositors; (3) the SEC suspend the mark to marketing accounting rule.

Added into this bill is a provision increasing the FDIC insurance to $250,000 which I support. In addition, my record also reflects my past support for AMT relief for middle class Americans, mental health parity, and extending tax credits for renewable energy. These provisions should not have been included in this bailout bill."

Dent:

“We’re faced with a historic choice – use the full faith and credit of the United States to help restore capital to our markets, or run the risk that they will freeze up, potentially leaving large numbers of Americans unable to conduct everyday business,” Congressman Dent said. “Many Americans on both sides of this issue have feelings of anger, anxiety, trepidation, and concern, and they have every right to feel that way. This legislation is not what I would have written, and I made several efforts to change it – some successfully, some unsuccessfully. Options are limited. The fact is we do have a credit crisis, and if we do not enact legislation, we risk Americans’ retirement savings, education accounts, mortgages, and jobs here in our community.”

Throughout the development of this legislation, Congressman Dent has been engaged with constituents, experts and officials to define the problem and find solutions. At the outset of this crisis, he spoke with many individuals, community bankers and small business leaders in the Fifteenth District to get their input.

Rep. Dent rejected the bill as proposed Monday because he felt is was rushed and contained too few protections for American taxpayers.

“That was not a vote for inaction – it was a vote to find better solutions,” Congressman Dent said. “And we found many. I worked hard to make sure this legislation isn’t just about Wall Street, but protects the people on Hamilton Street, Broad Street and Northampton Street.”

Congressman Dent initiated a call Wednesday to Federal Reserve Chairman Ben Bernanke, who assured Congressman Dent the credit situation “isn’t stable” and that if it is not addressed relatively soon, “there will be a quick and severe downturn” in the economy.

Rep. Dent joined several colleagues Thursday in an effort to amend the bill to reduce the taxpayer outlay for the Troubled Assets Relief Program (TARP) to $250 billion and remove controversial tax provisions added by the Senate. However, the Speaker refused all amendments.

Congressman Dent still noted significant improvement in today’s legislation over the original Administration request for up to $700 billion to purchase underperforming assets in the market. Now the up-front authority to the Secretary of the Treasury is for $350 billion, after which Congress can reconvene and end the TARP program if it proves unsatisfactory.

Several taxpayer protections include an insurance plan paid for by Wall Street and strict limits on executive compensation for companies that receive federal assistance. Those protections would provide assurances that Wall Street assumes a significant share of the risk, and that CEOs do not profit at taxpayers’ expense. These remain in the Senate version.

Congressman Dent also received an assurance from Treasury Secretary Hank Paulson that measures will curb foreign banks’ access to these funds. To be eligible for the program, a bank must be established and regulated under the laws of the United States.

The bill increases the Federal Deposit Insurance Corporation (FDIC) limits to better protect the American people's money and restore some faith in their financial institutions. The current level, $100,000, was set in 1980. Today it only covers about 63 percent of all deposits. Congressman Dent insisted on this change Sunday evening during lengthy meetings. The Senate bill included an increase to $250,000 through 2009. Congressman Dent is co-author of legislation to raise the level to $300,000.

This process led to the revision of “mark-to-market” accounting rules, which have clearly contributed to current financial problems. Congressman Dent insisted on this revision as well and has sought the Securities and Exchange Commission (SEC) to suspend this detrimental rule, which was enacted last year.

The rescue legislation also protects 21 million middle-class families from getting hammered by the Alternative Minimum Tax (AMT) for tax year 2008. The Senate-passed bipartisan economic rescue plan protects working families from the AMT – an unfair tax, initially intended to affect a handful of wealthy individuals in the 1960s, but grew to affect millions of middle-class Americans. Without action, 52,086 families in the Fifteenth District would be hit with an average tax hike of $2,500.

The bill extends critical energy tax credits and incentives to encourage conservation and the development of alternative and renewable energy technologies such as wind, solar, geo-thermal, hydrogen fuel cell, bio-mass and clean coal, a growing business sector and critical component to economic resurgence.

Most importantly, Congressman Dent said that Congress’ work is far from done.

“Taxpayers still have a say, and I’ll be watching closely to assure this legislation does what is intended on their behalf,” Congressman Dent said.

Congressman Dent will seek action by federal prosecutors to hold to account any individuals whose actions contributed to the financial crisis.

And, the Congressman said he will continue to push for legislation that will better serve the economic recovery in our communities, such as tax relief for small businesses.

“In 1776, Thomas Paine wrote to his countrymen, ‘These are the times that try men’s souls,’ and in the Republic’s history we’ve had many,” Congressman Dent said. “Americans have faced fiscal and banking challenges before. From Alexander Hamilton, to Andrew Jackson, to Franklin Roosevelt, to Ronald Reagan, leaders have been called on to make decisions they might not have made under different circumstances. But circumstances dictated this vote. The legislative process is often difficult and arduous but I am confident in the votes I cast this week. I believe now that Americans, as we always have, will work out our economic problems and find ourselves a stronger and better nation.”

House votes for bail-out legislation, President signs.

One of the strangest scenes in this whole financial debacle has been watching the faces of Congressmen and Congresswomen celebrating their collective ability to pass a bill. In other words, ALERT THE MEDIA, Congress performed its function. It's really akin to political potty-training.

And to watch their faces react to their good deed, and put it together with the raw fact of what they're doing, it's mind-boggling. Should anyone be happy that both houses of Congress have now approved, and the President has signed into law, a piece of legislation that authorizes the U.S. government to buy $700 billion worth of debt?

Locally, Congressman Charlie Dent voted in favor of Friday's Senate-approved deal, after turning against the first bail-out bill, introduced in the House earlier this week. Rep. Tim Holden voted against the bail-out bill for the second time this week.

I've placed calls to each Representative and will have a full story to their reactions in next week's Item.

How did it even get this far? Sure, deregulation can be to blame, but also consider that we're buying, as taxpayers, bad debt. It's intangible. It's next to impossible to see the value in something that has almost no chance of being repaid. Since it's most of our debt these Wall St. fat-cats have been shuttling back-and-forth (and worse, selling the risk of collecting it for profits, too), and most of us have no money, when will the taxpayers see the benefits of this deal that is so allegedly essential?

Surely, now, in less than one month, the collective taxpayers will be the proud owners of $700 billion in bad debt. It makes me wish Wall St. had gotten filthy rich on the backs of something useful, even in waste. Therein is the problem to this whole matter.

Wall St. bloomed under very false notions. The only companies making any sort of money lately are oil companies, security companies, big food producers, sports teams and adult industries. They're all driven by cash, mostly, war in the one's sense.

What ever happened to cash? Too many people tried to live outside their means. The drive for consumerism reached its peak a few years ago and now all Wall St. had left was to carry itself on the backs of people's debt and their ability or inability to pay it back.

This country must learn to sustain itself once again before we charge the new iPhone to our Visa bills and pay it back over the next three years. There are some economies doing very well, even in this country. I've listed them above, and there are more. They're all driven by cash, and when a real value is lost, there is almost no hope.

For Congress to pat itself on the back for this bail-out vote is atrocious and instead it should be getting back to work immediately to figure out how best to solve our real financial crisis. There were other deals bandied about in Congress over the last week, some that actually would put the $700 billion where it is needed - back in our hands. With interest, according to one Congressman from Ohio, this $700 billion (if and when we see a return) will ultimately equal triple that, or $2.1 trillion, or $6,900 for every breathing soul in this country, not just taxpayers. Think of what nearly $7,000 charged into the true heart of our economy would do.

Updates to stories

If you subscribe to any of the Items RSS feeds, no doubt you're aware that Julio Lastra was arrested yesterday in Virgina. Lastra was on the lam since Sept. 25 and is suspected in the death of Marisol Rivera, Frystown, a mother of six children.

Lastra was captured in Prince George County, Virginia, asleep in a stolen car.

For more on this story, check out next week's Item, and a sidebar story from Westside Weekly Editor Courtney McEachern on an important next step in this case and the many considerations for the numerous victims.

Hamburg upholds denying Firetree permit

If you've attempted to reach our Web site at berksmontnews.com, you may have noticed that it is not working at the moment. We're on the case, however. In the meantime, I attended last night's zoning hearing to determine the validity of John Leonforte's denial of a building permit from Alcat Reentry. It had planned to lease the Windsor Knitting Mill to Firetree Ltd. to operate a "halfway house".

Leonforte, Hamburg's zoning officer, denied this permit and Alcat (now Orange Stones Co.) appealed the decision. Following last night's decision, a crowd of about 35 cheered the borough's decision.

By Joshua Sophy, Item Editor

Hamburg's Zoning Hearing board nearly unanimously backed the decision of its Zoning officer, John Leonforte, in denying Orange Stones Co. (Firetree Ltd.) a building permit for the former Windsor Knitting Mill, Pine St. in Hamburg. The non-profit corporation planned to operate, among numerous roles, an 18-bed halfway house, a fact which troubled neighbors.

Members Mary Alice Wertz, Ronald Musser Jr., Ray Dunkle and Robert J. Gust all voted against the Firetree appeal. Anthony Merklinger did not vote because he missed the first session of the hearing, held Aug. 25, when a balance of testimony was presented. The board registered only a voice vote, and has 45 days to submit a response detailing its position, and the reasons for the vote.

Earlier this year, Alcat Reentry Inc. (which has now become Orange Stones Co.) purchased the former Wright's Knitting Mill in Hamburg for $1.5 million. Firetree Ltd. was going to lease the property to run its operation. The building was to serve as a drug and alcohol rehabilitation facility and detoxification center, a place where addicts attempt to "get clean." It submitted an initial building permit to Leonforte, which he denied. Less than a week after the first denial, and following some amendments, it submitted a second building permit, which Leonforte again denied.

Firetree decided to appeal this second denial, thus bringing about this month-long hearing. A decision in August was impossible because Hamburg failed to properly "post" the property, or improperly inform the public about the hearing. Since that first hearing, at which Firetree defined what it planned for the former knitting mill and Leonforte defended the reasons for his denial, the borough made all legal ramifications and called for a continuation.

After nearly 55 minutes of impotent legal wrangling Monday about the validity of both the hearing and the existence of Alcat Reentry Inc. as a registered corporation, only one new witness testified, Dennis Capozzolo, president of Alliance for Building Communities, an Allentown-based non-profit which owns a neighboring knitting mill to Wright's, in which a senior citizen-exclusive condominium cluster just opened. Capozzolo testified against the idea of having a proposed Firetree facility next door to his property.

"Seniors deserve a quiet atmosphere. They have a right to feel secure," he said under oath.

He also testified that opening such a facility in that specific neighborhood in Hamburg would taint his original conception of his property fitting into that scheme.

"We were supposed to be the jewel of that neighborhood," he said. "I don't believe it is the best use of that area."

Under cross-examination, Daniel Schranghamer (representing Orange Stones Co.) attempted to show that Capozzolo was not aware of the plans, as submitted, and presented a line of questioning to that tone. Capozzolo said he didn't know how many parking spaces, employees or what Hamburg's zoning plan was, though he testified he was concerned about those specifics of the Firetree plan in his sworn testimony.

"There's a stigma attached to that type of business," Capozzolo said, adding that his corporation's aim is simply to "provide affordable housing."

He added, "It causes some fears. I don't believe the two purposes can co-exist."

It was Capozzolo's testimony, especially, that tipped the scales in Gust's vote in favor of Leonforte's denial. Aside from being concerned about the proposed location being in a flood zone - established at the August hearing - Gust said the "halfway house" being located next to the senior condos was concerning.

"I didn't think of it until he testified about it," he said. Schranghamer could not pinpoint his company's next move. He said he's likely to wait until the Zoning Hearing board issues its written reasons for the denial before acting again.

Hamburg Red Cross volunteer bearing brunt of Ike

Hamburg's Sandra Kehl is one of two Berks County volunteers now stationed in Fort Worth, Texas, as the American Red Cross responds to Hurricane Ike.

The massive Category 3 Hurricane slammed ashore very early Saturday morning, directly impacting Galveston Island, and the city of Galveston. The storm's remnants - still a Category 2, then 1 hurricane - then slammed into Houston, the fourth-largest city in the U.S. Some estimates have more than 6 million people without power this morning as the southeast Texas coast must wait to see how 100+ MPH winds and drenching rains damaged the area.

I've been glued to The Weather Channel since about Hurricane Andrew, and haven't seen Jim Cantore yet this morning, so it can't be good.

Kehl is joined by Reading's Janice DeCoster, another Red Cross volunteer, in Fort Worth. They had been stationed at Florida. They left that state on Tuesday, the Red Cross announced. They will be volunteering by aiding evacuees who may be out of their homes for some time.

The Item will be attempting to reach Kehl to have a story in next week's edition of the paper. It looks as though Kehl and all Red Cross volunteers will have a tough week or two ahead of them as they deal with the obvious devastation.