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November 10, 1978 - Image 2

Resource type:
Text
Publication:
The Michigan Daily, 1978-11-10

Disclaimer: Computer generated plain text may have errors. Read more about this.

Program in
"9
KHebrew andK
zJudaic Studiesz
There will be a meeting of all majors in
Hebrew and Judaic Studies, as well as all
interested Faculty and Students on.. .
MONDAY, NOV. 13
3050 FRIEZE BLDG.
We 4:00 p.m.
We will discuss the aims of the programs,
requirements, and upcoming events.
REFRESHMENTS

Page 2-Friday, November 10, 1978-The Michigan Daily

City adopts financial guidelines

By JUDY RAKOWSKY
City Council adopted new but little-
changed investment guidelines Monday
night, only a year after city finance of-
ficials were disentangling themselves
from the mire of an investment scandal
in which the city could have lost $1.4
million.
Before the guidelines were discussed,
the city's outside auditors presented
their findings to Council, which in-
dicated fiscal health.
THE MAJOR CHANGE in the
guidelines is the subdivison of the Bond
Investment Fund into two separate
funds, the profits from which will be
used to finance the water supply and
the sewage treatment systems, accor-
ding to City Controller Mary Berth
Devers. She said the separate funds
were set up to comply with different
legal requirements which govern in-
vestment bond monies.
Devers, who has held her position for
six months, said the Consolidated In-
vestment fund will remain intact, for
monies from all other areas besides
bonds.
The new guidelines, which will take
effect Jan. 1, 1979, differ little from
those devised by the nine-member City
Investment Committee last October in
the wake of the investment controver-
sy. The committee is composed of
University law, business, and finance
professors as well as certified public

accountant, some council members,
and the treasury vice-president of the
Bendix corporation.
CONSPICUOUSLY ABSENT from
the list of banks and brokerage firms in
which the city is permitted to invest un-
der the guidelines is the firm of Merrill,
Lynch, Pierce, Fenner, and Smith.
Merrill Lynch is the firm which made
illegal investments with city funds in
January 1977.
As a result of the ensuing controver-
sy, City Accountant Marc Levin was
fired, Assistant City Controller Steven
Hendel was demoted, and City Con-
troller Lauren Jedele resigned.
Five people involved were also sub-
poenaed by the Securities Exchange
Commission.
In addition, the city's bond rating was
suspended for several days by Moody's
investors services.
PREVIOUS TO the guidelines written
last October, Devers said no formal in-
vestment rules existed. Merrill Lynch
was not on the first list of banks and
brokers either, according to Devers.
She said she knew of no definite criteria
for firms to get on the list.
The city retained the same outside
auditing firm after the investment flap,
but asked that its representative,
Donald Booth, be replaced. Devers had
worked for the firm before taking the
job of city controller.
Monday night's report from the
auditing firm indicated that the city's

fiscal health has vastly improved in the
past five years, and slight surpluses
exist in some city funds now. Both the.
accountants and Devers said those sur-
pluses should even out when compen-
sation is made for the deficits in some
special assessment funds.
LAST YEAR $4.5 million in securities
were purchased and held in safe-
keeping by the Loeb Rhoades firm,
which was not on the allowable invest-
ments firm list. Recently the city
requested the return of the funds, and
they are now in the city's safety deposit

box.
Among the recommendations the
auditing firm made were:
requisitioning $11,000 in state highway
funds due to the city, as well as $103,400
due from the state for maintaining state
trunklines, and also collection of
delinquent tax rolls and possibly main-
taining such records on the computer.
They also suggested that the city con-
ceal data processing equipment to
prevent vandalism, more carefully
manage accounting procedures, keep a
daily log on building inspections, and
keep up with overdue accounts.

Illegal workers topic
of Mexican teach-in

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Hooks: Nation apathetic
toward urban problems

(Continued from Page 1
wanted to cut the welfare monies and
stop 'the welfare mes', but they didn't
want to give up any of their garbage,
police, or fire services," Hooks
charged. "Most of them no longer want
to share the goods with the poor."
While Hooks acknowledged there are
legitimate reasons for 'tax reform, he
said, "There are better ways of dealing
with the issue of taxes and needs.
The civil rights leader suggested that
the legislatures or special tax com-
missions could 'more effectively deal
with the problem than could drastic and
damaging proposals like Proposition 13
or Tisch.
"Tisch would have been disastrous
here in Michigan - Headlee is bad
enough," Hooks said. The Headlee plan
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is not "necessarily looking into the
future" to solve the problems at hand.
Inflation, according to Hooks, has
also contributed to the feelings of
racism in the country. "People say
things like 'I have mine, and a plague
on those who don't'. It has bred a
meanness of spirit, which is dangerous
to the country," Hooks said.
Hooks said he was not sure that the
proposed Carter administration
measures will check inflation, and ex-
pressed concert that the plans might
actually hurt the minorities in the coun-
try.
"Carter's new inflation plan has
several scary features, one of which
might cause a rise in the unem-
ployment level by as much as one and
one-half per cent in order to lower the
inflation rate. The NAACP opposes this
policy, because we know that the
groups hurt by this unemployment rise
will be the " blacks and other
minorities."
The director said the real answer to
the problems is hard to find, but added
persistence is crucial. "We must not
become dissatisfied when we fail, but
continue to move on until we do find the
solution and the right choices," Hooks
said.
The sponsor of Hooks' talk, the
League for Human Services, is a
statewide citizens organization,
engaged in non-partisan study, plan-
ning, and action with the goal of im-
proving human services for the citizens
of Michigan. The theme of the league's
conference this year was "Revitalizing
our Urban Centers."

By TOM MIRGA
A three-part teach-in on conditions
in Mexico was capped off last night at
Schorling Auditorium with a discussion
of the problems of undocumented
Mexican workers north of the border.
Keynote speakers were Fernando
Cuevas and Paul Germanatta from the
Farm Labor Organizing Committee
(FLOC), a labor organization that is
currently organizing a boycott of Lib-
by's and Campbell's canneries, and
Alpha Hernandez, a legal aid attorney
from the border town of Del Rio, Texas.
CUEVAS CITED low wages, poor
housing and impossible work conditions
as the reasons for FLOC's strike of
growers and canners in Ohio this year.
"Every time we tried to contact the
growers, they would ignore us. The
canners treated us even worse," he told
the audience.
"Our wages are our life," Cuevas
continued. "Most of us have to live from
week to week. And the growers ask us
'who's going to pay our bills during the
strike?'''
Cuevas claimed the U.S. has only it-
self to blame for the problem of illegal
migrant workers. He said that the,
policy of hiring "braceros"-Mexican
migrants who work on American far-
ms, only to return to their homes in
Mexico-perpetuates a steady stream
of undocumented workers who grow
used to the life here.
"The more money that they make
here," he stated, "the more they want
to stay."
FLOC IS HOPING that its boycott of
Libby's and Campbell's, which began
just recently, will grow into 'a nation-
wide movement. Cuevas said support
was strong in the West, centered
around Denver.
"This winter we plan to organize the:
migrants in Florida and Texas," he
said, "and prepare them for the strike
in Ohio. We don't care if it takes us two,
three or four years. Now that we've got
it started, we won't stop. It's a big
tackle, but we know that we have to
take the cannerson.
Hernandez, whose work centers
around defending undocumented
workers from deportation and em-
ployer brutality, claimed that the most
raw cases of denial of human values are
perpetrated by the U.S. Immigration
Service.
"I GUESS THAT the brutality again-
st illegal workers leaves the clearest

picture of how the undocumented per-
son is viewed here," Hernandez
claimed. She recalled her own ex-
perience in the field, and cited cases in
which illegals were beaten, burned and
tortured by their employers.
Many of the cases never reached the
courts, Hernandez stated, and many of
the ones that did are dropped.
"Every policeman in every border
town thinks he's an immigration of-
ficer," she continued. "If your clothes.
don't match-the sure sign of an
illegal-you're sure to get stopped."
GERMANATTA attacked President
Carter's recent proposals on the status
of illegal aliens in the U.S. as both inef-
fective and discriminatory towards
Hispanics.
"The Carter plan isn't an amnesty as
he claims it is," he said. "It does the
workers more harm to apply for ittas
compared to staying in hiding as they
do."
Germanatta called the undocumen-
ted migrants "a sub-class of workers"
being denied their rights to engage in
unionizing and political activity. He
said that many of them could be depor-
ted for engaging in such activities.
THE LABOR organizer also pointed
out that when migrant workers are
spoken about, it is usually assumed
they entered'the country illegally. The
truth of the matter is, he said, that most
of them are legal citizens.
Another myth that Germanatta said
he hopes to crack was that migrants
steal jobs from the labor force and are a
drain on social services.
"Migrants take the lowest-paying
jobs, without hopes for advancement
and absolutely no job security," he
claimed. "The migrants work, pay
their taxes, but don't utilize the social
services that they pay for."
Germanatta said that fear of depor-
tation stops most from applying.
"The problem of undocumented
workers," he concluded, "goes much
farther than the legal implications. You
can't change social behavior by sealing
off a border."
Belcher backs
lenient
liquor laws
(Continued from Page i)

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drinking age, so how would it look for
the legislature to be lowering the
penalties," he said.
Bullard did not rule out the possibility
of a two-tiered type of legislation, which
would proscribe different penalties for
18 to 20-year-olds than it would for those
under 18.
IN THE MEANTIME, University law
student Connie LaClair is organizing an
ad hoc committee to lobby both the City
Council and the legislature for low
penalties for possession, consumption,
and purchase of alcoholic beverages.
LaClair, who is drafting an ordinance
of her own to bring before Council,.cited
a Michigan Court of Appeals ruling
upholding Ypsilanti's five-dollar pot
law as justification for a municipality
having lesser penalties for a particular
offense than the state.
"We think this is totally unfair," she
said. "We don't want the Ann Arbor
police wasting their time on beer raids
at fraternities and dorms.".
LaClair stressed, however, that the
proposed law would not attemt to
reduce penalties for drunk driving or
for those under 18. "What we're trying
to do is differentiate between sin and
danger," she said.
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113 weLibert-y

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