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About Portland observer. (Portland, Or.) 1970-current | View Entire Issue (Feb. 1, 1984)
Portland Observar. February 1, 1984 Page 5 State, feds approve Hopsing (Continued from page I column 6) ■ted with two priiK ip*! ow’nert — Christopher D. Scarratt (o f Japan ese descent) with SI percent and Suzanne C . Hatch, wife o f R .A . Hatch, with 49 percent. Scarratt was president; M rs. Hatch was vice pre sident; and Richard Hatch was se cretary-treasurer (Richard was also vice-president o f R .A . Hatch C on struction). Scarratt said he had no money, so R .A . Hatch loaned money for the work and equipment as needed Scarratt continued to work for R .A . Hatch and Hopsing was run out o f the Hatch office. In 1981, Suzanne Hatch sold her shares to Richard N Hatch, brother and employee o f R .A . Hatch. (Su zanne is now co-owner o f H . A H . Electric, a certified Women's Busi ness Enterprise.) Hatch explained, " . . and my brother Rich and Chris decided they wanted to do business together so I offered to sell my wife Suzie's 49 percent to my brother R ic h ...” During this period R .A . Hatch Construction provided bonding, made financial loans, loaned em ployees to Hopsing, did its payroll, rented it equipment. They used the same accountants and attorneys. R .A . Hatch took the risk for H op sing. " A t the time (1981) I was concerned—-when Rich bought Suzie's stock, you know, that was one o f the other reasons that H op sing was cither going to make it or I wasn't going to be responsible be cause I ’m sitting here guaranteeing everything they’re doing. Chris hasn’t got any money and if this thing tips over, guess who gets to pay the bills.” Questions regarding Hopsing's minority status arose early. In 1979 the office o f the U.S. Department of Transportation Inspector General responded to a complaint about Hopsing, and the San Francisco o f fice investigated. However, the files revealing the findings and recom mendations are missing. In January o f 1981, the State o f Washington denied Hopsing’s re quest for minority certification, stating that "H opsing Construc tion, Inc. is an extension of R .A . Hatch C o .” Hopsing applied for certification as a minority business enterprise with O D O T and was granted certifi- cation on March 6th and September 22. 1980 Hopsing again became the topic o f complaints when R .A . Hatch Construction won multiple O D O T contracts for widening the Banfield Project and was the prime contract or on the Banfield Light Rail Pro ject. Hopsing was awarded nearly $8 million in subcontracting work on the Banfield Project. Tri-M at decertifies In August o f 1983, T ri-M e t de nied Hopsing's request for minority re-certification. T ri-M e t determined that Hopsing did not meet federal M B E eligibility requirements. " A n eligible M B E shall be an indepen dent business. The ownership and control by minorities shall be real, substantial and continuing and shall go beyond the p ro forma ow nership o f the firm as reflected in its owner ship docum ents.. . the firm shall not be subject to any formal or inform al restrictions which limit the custom ary discretion o f the minority own e r s .. . the contributions of capital or expertise by the minority to acquire their interests in the firm shall be real and substantial." The C ity o f Portland followed, rescinding Hopsing's M B E certifica tion on (X to b e r 24, 1983, determin ing that Scarratt leaves administra tive decisions to R .N . Hatch and does not have the power to direct management decisions and day-to- day decisions regarding the direc tion o f the company. The Federal Highway Adminis tration responded by conducting its own investigation. The review team, W illie Harris, Regional Director of C ivil Rights, and Tony Burrows, F H W A Division office supervisor. Financial Specialist, conducted the review. They determined that there were procedural irregularities in the O D O T 's 1980 certification and it appears to be invalid although H o p sing has been operating under that certification. Certain housekeeping changes had been made in the by laws and board o f the corporation in response to T ri-M et's findings. However, R .A . Hatch had co signed all bonding for Hopsing from 1976 to August 1983 at no charge (he charged two percent after August 1983). From Septcm- ber 1981 1983. 70 percent o f all needed equipment was leased from R .A . Hatch Co. A line o f credit o f 3430,000 at Oregon Bank was co- signed by R .A . Hatch Co. These facts led the review team to deter mine that the company does not qualify under federal regulations. During fiscal 1983, Hopsing C o n struction had 20 active jobs as a sub contractor totalling $9.3 million; over $8 million was credited to O D O T 's minority business require ment. Although R .A . Hatch Company's direct control over the company had lessened, he had assigned an "o v e r sight com m ittee" to oversee the f i nancial operation o f Hopsing, in cluding co-signing checks. This committee is made up o f three ac countants who work for R A. Hatch Company. One o f these men, Gary Everton, is also the accountant for Hopsing. O D O T . by now under pressure to revoke its own certification, ap pointed a "Blue Ribbon” com m it tee to review the company— David Aam odt, Assistant Attorney G en eral; Tom Higashi, Deputy C o rp o r ation Commissioner; Vern Hahn, O DO T. O D O T determined that Hopsing met minority requirements and re certified the company. "W h a t we have here is a M B E that started on a shoestring that has now dared to succeed. W hat we have is a mentor who has shown its faith, put $8,000,000 o f its credits and future on the line and dared to help the M B E succeed,” the stale committee reported. Shriners elect officers Joseph H . Henderson was recent ly elected Illustrious Potentate o f M ina Temple No. 68 o f Portland, Oregon — A .E .A .O .N .M . Shrine o f North and South America, Prince Hall A ffiliated. Other elected officers were: W illiam H . Hay good, Chief Rab- ban; Charles W , Sanders, Asst Rabban; James H . Wallace, High Priest and Prophet; Joe. H . Pruitt, Oriental Guide; L .C . Ellison, Treas urer, Jo h n T . Blow, Jr., Recorder. Virgie L. Tinsley was elected Illustrious Commandress of M ina Court No. 142, Daughters o f Isis, Auxiliary to M ina Temple. Other elected officers were: G loria P. Brown, First Lt. C o m mandress; Margaret J. Isaacs. Sec ond Lt. Commandress; Layola I. Brown, High Priestess; Bernice N o ble. Oriental Guide; Vethel M H all, III. Rccordress; Ann B. Holland, Treasurer; Pearlie M . Joiner, First Ceremonial Daughter; Orene Rose- mon. Second Ceremonial Daughter; Daisy Calvin, Inside Spy; Frances Odom, Outside Spy; M abie B Neal. Directress o f Isiserettes. The program o f M ina Temple and M ina Court for 1984 includes church visitations, involvement in community and charitable projects, youth activities, annual Childrens Chirstmas Party, the annual distri bution o f food baskets to the needy by M ina Temple and the sponsor ship o f the Isiserettes by Mina Court. Joseph H. Henderson and Virgie L. Tinsley were elected to leading positions by Mina Temple 68 of the Prince Hall Shrine. Variety I Salon SPECIALIZING IN TOTAL HAIR CARE announces its reopening of VARIETY II SALON February 7, 1984 Locations Technicians W M I W A IT F ed s re v e rs e a ta n d Safeguard Your Home Wilt install metal screen lor tiaaement window M odest prices I The F H W A , rejecting the advice o f its Civil Rights office, concurred, but advised that Hopsing's depen dence on R A. Hatch Co. should de crease during the year. O D O T 's good news was followed by another rejection by the State of Washington's Department of Transportation. " I t appears that Hopsing construction is not an in dependent minority-owned busi ness. There appears to be dispropor tionate control manifested in Richard Hatch, vice president, for management and overall decision making for the firm ." 234 2748 Sonia................................................................................. 4664 NE Union Valerie............................................................................... ..........284 6017 Melvie. M an ager...................................................... 3612 NE 16th Ave. Gloria ft Cam ille........................................................................ 287 6618 WALK-IN WELCOME • APPOINTMENTS DESIRED ' -F R E E - Starting A Business Seminar On February 7th and 14th, Professional Training Systems, funded through the Oregon Department of Transportation/Highway Division, will hold free seminars for ethnic minorities and women who are just starting or thinking of starting a busi ness The emphasis will be on owning and operating a construction or construe tion related firm. The February 7th session will cover the legal and financial aspects rting a business. The advantages and disadvantages of sole proprietorships, par.nerships, and corporations will be weighed. Selecting a name, accounting systems, bon ding, licensing, minority business enterprise programs, and the nature of construe tion will be highlighted. The February 14th session will cover the role of the construction firm from the time a job is advertised until it is awarded. Identifying which job(s) to bid, develop mg strong prime contractor-subcontractor relationships, guidelines for estimating and bidding, the "in s" and "o u ts" of bonding, and the minimum wage require ments of the Davis-Bacon Act are covered. There s work lime Dues- paytng time Other people s time And then there s your time Time to make every minute count with the rich, smooth taste of Miller High Life So grab a cold one And Welcome To Miller Time PRÜFE55IDNRL T W IN IN G SYSTEMS I It Í g » J Classes will begin promptly at 7:00 p.m. and will run until 9:30 p.m. classes will be held at 321 N.E. 20th Avenue in Portland. Seating is limited so call us at (503) 238 1404 to reserve your space. 98? B'aemq Co M- 321 N.E. 20th Ave. (503) 238-1404
