Page 7


the business is very profitable if losses are below 66.2%. They usually are. It’s rough when your industry starts believing what it’s putting out itself. Many companies have an automobile loss ratio that’s not over 55%.” Whether any of these estimates is correct or not, it is clear that, if they are available to the board, they are not available to the public through the board and that such basic breakdowns of the policy dollar are not discussed bythe ratemaking board in the public hearing which is supposed to deal with the subject. Rather, the public is shown a completed rate book which is accepted later in a closed meeting, and it is difficult to discover where the board and its staff take into consideration the factors specified in the insurance code. SOMETHING MAY COME of the unhappiness generated by this year’s rate hearing. The Service Office has proposed a plan creating 250 classes of drivers for rating purposes, but the insurance agents recoil from this as a statistical nightmare. Gov . Connally has joined with insurance lobbyists who yawned at safety legislation last session to call for new traffic laws and strict enforcement of them. The insurance board, pursuing the notion that only the drivers are at fault, has ordered developed a new version of the old merit plan under which drivers were penalized for accidents and tickets. But there are politicians who are unlikely to settle for this approach. Sen. Aaron can be expected to fight the insurance companies -relentlessly, and Sen. D. Roy Harrington of Port Arthur was among the complainers at the rate hearing, and in the House, Rep. Skeet Richardson of Fort Worth has called for an investigation. L.L. NOTES: 1.V.A.T.S. Ins. Code Art. 5.14. 2.Dallas Times Herald, June 10, 1966, page 30A. 3.Houston Chronicle, June 26, 1966, Sect. 2, page 3. 4.V.A.T.S. Ins. Code Art. 5.01. 5.Houston Chronicle, June 26, 1966, Sect. 2, page 3. A Conflict of Duties? Connally, Texas, and HemisFair Austin The sixth section of the fourth article of the Texas Constitution says: “Sec. 6. Governor to Hold No Other Office, Etc. During the time he holds the office of Governor he shall not hold any other office, civil, military or corporate; nor shall he practice any profession or receive compensation, reward, fee or the promise thereof for the same; nor receive any salary, reward or compensation or the promise thereof from any person or corporation for any service rendered or perfomed during the time he is Governor or to be thereafter rendered or performed.” The words of this section before the first semi-colon appear to stand on their own. After the first semi-colon, the section prohibits the governor from practicing any profession or receiving any pay for doing so or from any person or corporation for any service. Read as plain English, the section says the governor shall not hold “any other office, civil, military, or corporate,” practice a profession, or be paid for same. In a news story in 1965 on Governor John Connally’s impending designation as commissioner general to HemisFair 1968, San Antonio’s proposed international exposition, the San Antonio Express said his acceptance of the position “immediately raised questions about the governor’s future political plans. . . . If he retires from public office, he would be able to devote all the time necessary to the HemisFair pot, without conceivable conflict. If Connally seeks and wins re-election as governor, the question of conflict of duties might be raised.'”I Connally did seek and win re-nomination, and the question of conflict of duties has been -raised. THE LEGISLATURE, under Connally’s urging, earlier in 1965 had ap 8 The Texas Observer propriated $4.5 million in state funds to finance a Texas pavilion at the fair. Last January Connally, speaking at an afternoon press conference at Hemisfair headquarters, revealed plans for a $10 million permanent Texas Institute of Living Cul. ture as the state’s official HemisFair exhibit and spoke with enthusiasm on the imaginative possibilities of such a place. He said that he will ask the legislature for another $5.5 million for this. As for critics of HemisFair’s requestsfor state and federal funding, Connally said, “They don’t . understand. They don’t have the vision to see the good of this project. I am unsympathetic with those who throw roadblocks in the path of those with daring and dreams. Since the money is coming from all Texans, this exhibit will honor and benefit all Texans and even the nation.” 2 In 1965 Sen. Ralph Yarborough had sponsored a bill in Washington obtaining initial federal funding for HemisFair, but he was not pleased when Connally was made commissioner-general. Cong. Henry Gonzalez of San Antonio raised a question about high HemisFair officials profiting from HemisFair, was satisfied, and proceeded this year with legislation in the U.S. House to fund the $10 million U.S. pavilion that HemisFair wants. The bill was not introduced in the Senate, however; evidently the senator was biding his time. This time came the day before the July 13 reception in Washington given by HemisFair for Connally as commissioner general. Connally had scheduled a one-week tour in Latin-America for HemisFair but had to cancel it; he has announced a threeweek tour starting July 24, and the Washington reception was a preliminary. “Thank you for your invitation,” Yarborough wrote Ewen C. Dingwall, HemisFair’s man in Washington. “I regret that I shall not be able to attend, lest my presence be interpreted as approving the unconstitutional occupancy of the office of commissioner general by the current governor of Texas. I direct your attention to Article IV of the Texas Constitution, Section 6,” the first portion of which he then cited. “The collaboration of HemisFair and the governor to accomplish his investiture of the office of commissioner general of HemisFair 1968 is a flagrant violation of the Constitution the governor has sworn to uphold. I will not be a party to such violation of the Texas Constitution,” Yarborough said. “Recently other conflict of interest transactions by HemisFair have come to light. If HemisFair is to continue to merit the support of the people and the government, it must purge itself of its conflict of interest contracts and appointments and obey the Constitution.” Yarborough appended an excerpt from HemisFair’s rules and regulations giving the duties of the commissioner general, who, they say, “is entrusted with sufficient authority . . . to insure fulfillment of all obligations by the Exposition vis-a-vis its participants,” “will supervise the program as a whole,” “will represent the government of the United States in all relations with participating countries,” and “will have the right to initiate disciplinary action and to suspend, cause to cease, or recommend changes for improvements of any activity which to him seems contrary to the proper conduct of the Exposition or in violation of the Bureau of International Expositions’ regulations.” 3 Larry Temple, the governor’s executive assistant, gave the official position of the governor’s office: “Obviously, the post of HemisFair commissioner general is an honorary position and not a compensatory office covered by Article IV, Section 6 of the Constitution. The governor gets no compensation for his service.” From Washington Gonzalez was quoted, “There is nothing that says Senator Yarborough has