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December 01, 1978 - Image 12

Resource type:
Text
Publication:
The Michigan Daily, 1978-12-01

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

Page 12-Friday, December 1, 1978-The Michigan Daily

Cereal industry disputes FTC
action on alleged monopolizing

By ELLEN FUTTERMAN
"Tony the Tiger" may be forced to
leave his home on the Kellogg's cereal
box for a smaller cereal company if the
Federal Trade Commission (FTC) has
its way.
The cereal industry faces one of the
government's major anti-trust cases
hinging on the theory that leading
cereal companies constitute a "shared
monopoly."
THIS CONTENTION, suggesting that
U.S. consumers subsequently pay
higher than necessary prices for
cereals, contrasts with usual anti-trust
assertions about individual firms
exercising monopolies.
"I don't understand why the FTC is
picking on us," said Rolfe Jenkins,
manager of corporate communications
at Kelloggs. "Why not file suite on the
automobile or light bulb industry; they
only have three major U.S.
competitors."
Jenkins says the term monopoly does
not apply to the cereal industry since
there is more than one cereal
manufacturer.
THE "CEREAL" WAR,ongoing for
more than six years, is currently at a
standstill because of a problem
involving Administrative LawhJudge
Harry Hinkes, the man who has
presided over the case since it opened.
The problem stems from' Hinkes'
retirement in September. He signed a
professional services contract with the
commission calling for $46,800 through
next August while he finishes work on

the case and submits his option to the
commission.
General Mills challenged the
arrangement charging that it violated
Civil Service rules, Kelloggs concured
with General Mills. "It is unreasonable
that the judge can sign a contract with
the FTC who is prosecuting the cereal
companies,"Jenkins said.
THE COMMISSION suspended
activity in the case while it considers
the cereal industries motion. Hinkes
had been expected to finish the trial
next year. But if he is retired,
substantial parts of the case would have
to be retried. The trial has already cost
more than $5 million.
No one is sure what a ruling against
the cereal companies would mean. "We
might have to give away whole plants
or a product name like Rice Krispies,"
Jenkins said.
Cereal tycoons charge that because
the cereal industry lacks the political
clout of other large companies, it has
been chosen as a precedent to seek
disinvestitures in other highly
concentrated industries.
JENKINS MAINTAINED Kelloggs
does not deter other companies from
competing in the cereal market. But he
also admitted thattit is difficult for
smaller companies to compete with the
larger cereal manufacturers.
"If the FTC rules against us, it would
decrease efficiency and probably
increase cereal prices substantially,"
Jenkinssaid. "It has taken Kelloggs 72
years to grow to our current level. A

smaller company would have to spend
millions of dollars developing, training
and marketing to reach the lowest cost
and highest quality level of production.
Small companies just developing would
have to charge high prices for their
product to pay for company developing
costs."
But a commission staff study
estimated that cereal prices would be
20 to 25'per cent lower in a truly
competitive market.
"WE ARE CONCERNED about who
will give us the best cereal product for
the cheapest price," said the cereal
buyer for Kroger Supermarket chain in
Michigan. "A small company named
Maltomeal used to make Kroger cereal,
but they no longer make ready-to-eat
cereals. General Mills, General Foods
and' Purity Foods make our cereals
now."
Krogers contends it doesn't matter
who makes Krogers cereal-small or
large companies-as long as the cereal
is delivered as the stores need it and the
customers have no complaints about
them.
"We have nothing against buying
from smaller cereal companies,"
Krogers says. "There just aren't
enough of them."

AP Photo
Nixon is alive and kicking
Former President Richard Nixon faced both applause and jeering protestors while addressing a packed audience at the
historic Oxford Union Debating Society in Oxford, England yesterday. The talk on foreign affairs and the subsequent ques-
tion-and-answer session climaxed a week-long trip to Europe. Speaking over angry chants from egg-throwing demonstrators
outside, Nixon remarked, "I have retired from politics but I have not retired from life."

m

Workshop to study third
world technology uses

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Beginning in January, 1979.
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Ypsilanti, 48107
Phone: 487-2075 or 487-4220
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Expires December 7, 1978

By JEFFREY WOLFF
The newly-formed Association for
the Advancement of Appropriate
Technology for Developing Coun-
tries (AAATDC) is holding its third
monthly workshop tomorrow in
what its president calls a major ef-
fort to awaken people to "the need
for the application of appropriate
technology to the problems of
developing countries."
Appropriate technology, accor-
ding to AATDC President Ike Oyeka,
is that which "can use and conserve
local resources, is low in cost, easily
aintained, preserves the environ-
ment, can be improved upon, and
fits into established cultural stan-
dards while increasing the well-
being and dignity of humankind."
Oyeka added that "You can't just
take one people's technology and
dump it on a developing people."
One example of such an inap-
propriate use of technology, Oyeka
said, is the sending of expensive
American tractors, originally
developed for large American
agribusiness farms, to developing
nations for use on small family far-
ms.
THIS EMPHASIS on local resour-
ces and conditions has led to what
Oyeka terms AAATDC's emphasis

on "country specific" solutions as
opposed to any "global model" for
development.
A major problem which must be
corrected, he said, is the prevalent
practice of import substitution. For
example, he pointed out,. many
developing countries will use land
and human resources to grow cash
crops for export, but are consequen-
tly forced to import food later in or-
der to feed their people.
AAATDC is a national
organization founded because of
concern about the selective transfer
of appropriate technology to
developing countries. Ap-
proximately 40 per cent of AAAT-
DC's estimated 200-person member-
ship hails from outside the United
States.
AAATDC's first major project will
be to assemble a comprehensive
bibliography of research work about
appropriate technology in
developing countries. Other projects
include a publication; --Approtech
-- a major symposium planned for
next winter, and tomorrow's
seminar, which will be held in the
East Conference Room on
Rackham's fourth floor beginning at
10 a.m.

Barber shopsingers
note new popularity
By RUTH KAUFMAN THE ALL-MALE membership has
"Lida Rose, I'm home again Rose, to grown twice as fast as the repertoire.
get the sun back in the sky ..." The beginning roster of three members
This famous tune from The Music has increased to a chorus of 21
Man once resounded on Broadway, registered and licensed singers plus
summoning thousands with its enticing many other occasional participants.
harmony. Sung by a smartly dressed "The purpose of the group is to keep
barber shop quartet, this melody wove alive barber shop music," said
its way into the hearts of many. president Ken Gates. "Many of the men
TODAY, THE music of "Lida Rose" can't read music, and many have never
still resounds, but in Ann Arbor, not sung before. In general, we just do the
New York. St. Lukes Lutheran Church basic songs to get them used to seeing
at 4205 Washtenaw Avenue is the site what the music is like, at least to be
where the blending chords of barber able to tell in which direction the notes
shop melodies such as "Lida Rose" are supposed to go. We feel the barber
echo on Tuesday nights, beginning at 8 shop. You don't have any accom-4
p.m. when the Huron Valley Chapter of paniment, only your own ears to depend
the Society for the Preservation of Bar- on. It's an unusual feeling."
ber Shop Quartet Singing in America Though learning "how to barber-
(S.P.E.B.S.Q.S.A.) meets. shop" is the real purpose of the group,
Instead of only four voices, as many members feel very strongly about
as 30 first tenors, leads, baritones, and another goal. "The society has a ser-
basses join in song, filling the air with vice organization," Gates explained.
both familiar and unknown barber shop "They support the Institute of the
songs. Logepedics. It is an organization which
Begun in February 1978, the chapter provides training and helpsfor children
has been gaining popularity rapidly. who are handicapped;with speet
Though it started with a repertoire of defects. Music, in a variety of ways,
only two songs, there are now fifteen can get through to these children. Some
numbers which the group performs of our choruses have sung there. The
well, including "On the Banks of the purpose we have here is to put on shows
Wabash," "Wait Till the Sun Shines, where the proceeds are donated to the
Nellie," and "My Wild Irish Rose." school."

Perspectives on Camp David discussed

(Continued from Page 1)
AHMAD MADE CLEAR from the
start that his presentation would not be
unbiased. "I make no pretensions," he
asserted "to be objective on these
issues of global concern to humanity.
Like the Camp David agreements, this
conference excludes a Palestinian
voice, but I cannot speak for them. Wh-
at I have to say is from the point of view
of a radical student from the Middle
East."
He went on to list what he thought

.. ...,

were the four major conflicts obstruc-
ting a peace settlement, claiming the
most fundamental of these is Jewish
and Palestinian claims to the same
land. "No matter how we view things or
place the blame, the fact is that Israel
has occupied aland from which another
people were displaced. Camp David
failed to deal with the issue," Ahmad
charged.
The Arab student called the conflict
between Israel and Egypt, Jordan, and
Syria; the condition of Palestinians in
other Arab states; and the struggle
between conservative and radical fac-
tions between these states as the other
areas of concern that Camp David
failed to act upon.
HE CONCLUDED that the Camp
David framework contained provisions
that would prove "unacceptable to any
self-respecting and aspiring
Palestinian, Syrian or Egyptian.
Rabinovich addressed the audience
to the role of Syria in the Middle East
peace talks. He said the stability of the

Assad regime and closer cooperation of
the Syrian government with Iraq are
keys to understanding Syria's potential
power.
BUT RABINOVICH also said that the
Assad regime has passed its prime.
"There are domestic difficulties, shake
ups in the army and government and
armed attacks upon officials," he
stated. Rabinovich also said that there
were rumors that Assad is seriously ill.
"If we look ahead a year or two," he
said, "consider changes in Syria."
Later in the afternoon, Ragei El
Mallakh, professor of economics from
the University of Colorado, said that -a
peace agreement between Egypt and
Israel would benefit the economics of
these nations and provide a stablizing
effect throughout the region.
"A spillover effect through the Mid-
dIe East would result," El Mallakh told
a crowd of over 40 in Rackham. "An
Egyptian-Israeli accord can show that
the lot of the people can be improved by
peace, setting an example for neigh-

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boring states, he said.
El Mallakh said that a program like
the post-World War II Marshall Plan
could be carried out by using the abun-
dant resources of the Middle East and
the technology and money from
western countries. "Greater invest-
ment will occur," he added.
Robin Barlow, professor of
economics, disputed El Mallakh's
claim that a peace would bring
economic gains to Egypt.
"IT IS UNLIKELY that Egypt would
reduce its ,military expenditures,"
Barlow said, after El Mallakh com-
pleted speaking. "Egypt is threatened
from the west (Libya) and Sadat is
disturbed by the presence of Russia in
the Horn of Africa."
The acquistion of the Sinai would not
make much of a difference due to the
unavailability of water. U.S. aid to
Egypt-already close to a billion
dollars now-may be offset by cuts
from other donors resulting in a peace,
said Barlow.
LSA vote
(Continued from Page1)
many members of the council had been
involved in the campaign.
ALL SIX CURRENT council mem-
bers were involved in last week's elec-
tion.
THE ACADEMIC Judiciary then
hurriedly reconvened and asked
Strasberg to assist them with the
recount. Once she agreed, said Co-
chairman Carl Parisi, the justices
voted to conduct the recount them-
selves, with the advice of Strasberg and
Brazee.
Besides the races for council
positions, three referendums were
decided in the election.
The ballot referendum to revamp the
LSA election process from two elections

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