TAKING BACK
THE NIGHT
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Vol. LXXXX, No. 39 Ann Arbor, Michigan-Saturday, October 20, 1979 Ten Cents Ten Paget,
Wayne Co. broke,
workers
sta yon
From UPI,AP, and Reuter
DETROIT-Wayne County officially
went broke yesterday. But the 2.7
million residents of the nation's third-
largest county probably won't notice the
difference until at least next week.
The county, saddled with a chaotic
bureaucracy and a deficit of at least
$18.2 million, was unable to issue
paychecks to more than half its 5,300
full-time employees.
UNION OFFICIALS said the workers
would remain on the job without pay, at
least until early next week, while the
county Board of Commissioners con-
siders a variety of plans to deal with the
.crisis.
A hearing is scheduled in Wayne
County Circuit Court next Tuesday on
the county's proposal to pay 4,400 of the
workers in scrip to be redeemed when
tax receipts come in to fill the empty
coffers.
Council 25 of the American Federaton
of State, County and Municipal Em-
ployees union opposed the scrip plan
and filed suit to block it. A judge issued
a temporary injunction against it Thur-
sday and scheduled another hearing for
Tuesday.
EUGENE GUIDO, Council 25 direc-
tor, said all workers it represents have
been urged to stay on the job pending
the outcome of the union's lawsuit
against the county.
Paychecks totaling $2.3 million were
due yesterday to about 3,000 county
employees. County employees, who are
paid every two weeks, are divided into
two groups and received their two-week
paychecks on alternate Fridays.
job without checks
~I NUM, ' '
Wayne County's cash flow problem
started becoming critical in August,
and-yesterday's payless payday came
as no surprise. For the past three years,
the county has been running in the
red-in violation of state law. Officials
expect a deficit of at least $18.2
million-and possible more-this year.
GOV. WILLIAM MILLIKEN, now
visiting China, has said the main reason
for the financial mess in Wayne County
is that no one is in charge.
County Treasurer Raymond
Wojtowicz said $330,000 remained in
county coffers. But Thursday, that
$330,000 was impounded by the chief
judge of the Wayne County Circuit ben-
ch, Richard Dunn, for court operations.
The state of Michigan said it would
send in state police to operate the coun-
ty jail in case a weekend strike and per-
sonnel from the state public health and
mental health departments were
prepared to step in at county medical
facilities.
See WAYNE, Page 7
U~dy r ouuMy rL r tKJtKLI
RALPH NADER urges a Michigan Theater audience last night to push for
the establishment of local cooperatives to offset the power of large corpora-
tions.
Nader, Kuhn advocate
consum'er cooperatives
AP Photo
THE PAYROLL WINDOW in the Wayne County Treasurer's office closed
yesterday as the county officially went broke. The union representing more
than 3,000 county employees who did not receive paychecks filed suit
demanding that county commissioners be arrested for allegedly violating
state labor laws.
By PATRICIA HAGEN
Neighborhood cooperatives are
the best way for consumers to
combat inceasingly unrespon-
sive big business, said consumer
activists Ralph Nader and
Maggie Kuhn last night.
Speaking before a receptive
audience of about 1,800 in the
Michigan Theater, Nader and
Kuhn touted the advantages of
cooperative action and derided
what they called self-serving
practices on the parts of large
corporations.
NADER AND KUHN touched
on a range of consumer-oriented
topics in their speeches and
during a press conference which
preceded the lecture. They
denounced nuclear power, lauded
increased reliance on solar power
See NADER, Page 7
Regents okay administrator's
large request for state funds
S UMMER S TA TIS TICS BE TTER THAN EXPEC TED:
CoTomy rebounding.
Front Reuter and AP
By JULIE ENGEBRECIIT
The Regents disappointed the
faculty on two counts yesterday.
First, they rubberstamped an ad-
ministrative proposal to request $30.4
million from the state for next year,
which included an 11 per cent pay hike
for faculty and staff instead of the 16
per cent salary increase the faculty,
requested.
ADMINISTRATORS and Regents
acknowledged the proposal for a 16 per
cent salary increase was legitimate,
but said they believed the state was not
likely to grant a request of that size.
Second, in approving guidelines for
academic program discontinuance,
they rejected a provision for every
program transfer to be approved by the
receiving school or college governing
faculty.
The University's policymakers ex-
pressed concern that the views of those
grops might be clouded by their own in-
terests rather than what is "best for the
University."
SPEAKING ON the state ap-
propriation request, University
President-designate Harold Shapiro
said, "An 11 per cent increase,.while
not solving all our problems, would
move us significantly in the right direc-
tion."
Shapiro, who will serve as vice-
WASHINGTON-The recession that was feared to have
begun in mid-summer may not have occurred after all,
government statistics showed yesterday. Key figures showed
a rebound in economic growth to a 2.4 per cent annual rate
and signalled that inflation may be easing.
While the figures showed the economy doesn't yet fit the
generally accepted definition of a recession, Treasury
Secretary G. William Miller indicated he expects a recession
still may occur.
"I hope people will not be misled into thinking we.are
headed toward expansionary growth," Miller said.
THIE (OMMERCE Department said that total production
of goods and services in the economy grew at an annual rate
of 2.4 per cent in the July-September quarter, reversing the
previous quarter's 2.3 per cent decline.
Inflation as measured in the government accounting of
total U.S. production slipped to an 8.4 per cent annual rate in
the latest quarter from 9x3 per cent in the previous quarter.
These statistics, which include prices paid by both
business and consumers and take accou.nt of shifting buying
patterns, show inflation this summer was the slowest in a
year.
THE GOVERNMENT'S narrower measure of consumer
prices alone has risen to a steady annual rate of 13 per cent
all year.
The statistics for total production, or Gross National
Product (GNP),, provide the broadest view of the state of the
economy.
The report contradicted some officials' views that a
recession, or prolonged decline in production, is under way.
BUT THE STATISTICS covered a period before the sharp
tightening of credit by the Federal Reserve Board earlier
this rfonth.
Commerce Department economist Courtenay Slater said
the tightening should depress economic activity. She told
reporters that although she cannot say whether a recession
has already started, she still expects one.
Slater said she expects a resumption of declining produc-
tion, "probabaly quite small," in the current quarter. She
and several other economists had originally expected
decline tor tne tnira quarter as well.
WHITE HOUSE Press Secretary Jody Powell said the
growth of the economy this summer confirms President Car-
ter's view that inflation has to be his primary concern.
Regents adopt updated
student conduct rules
president for academic affairs until
Nov. 1 added, "I don't think 16 per cent
is 'doable' next year in terms of the
state's budget capacity."
Committee on the Economic Status of
the Faculty (CESF) Chairman Harvey
Brazer argued Thursday that the 11 per
cent figure would be a pay cut in terms
of real income, resulting from the 13
per cent inflation rate so far this year.
THE REQUEST for state ap-
propriations is due in Lansing by Nov.
1. The $30.4 million figure is a 12.9 per
cent increase over this year's budget.
For this fiscal year, the University
requested $24 million, but received only
half of that.
The state allocation request also in-
cludes a 15.8 per cent increase in
benefits, along with additional request
for equipment,.books, utility fees, and
other new programs.
FOR THE CURRENT fiscal year, the
faculty requested a 14.5 per cent pay
hike, and the Regents approved a 10 per
cent increase. Faculty and staff then
received a seven per cent raise for 1979-
80.
The governor will announce in
January his decision how much oney
the University should receive. A final
appropriation should come from the
state legislature by early July.
The Regents also approved
renovation and constructiom projects
See REGENTS, Page 7
By TOM MIRGA
The Regents yesterday adopted a
revised University Judiciary System to
replace a cumbersome predecessor
that was never used in eight years. The
new system is aimed at enforcing a set
of guidelines enacted in March 1973
governing the conduct of students,
faculty and staff members.
During their April 1970 meeting the
Regents discussed the need for Univer-
sity-wide disciplinary rules and enfor-
cement procedures in the wake of ever-
increasing student unrest. Interim
rules were issued to provide a tem-
porary answer and the following year a
judicial system composed of a Com-
plaints Referee, a University Trail
Court and a University Court of Ap-
peals was established.
"I GUESS WE felt a permanent
system would be useful," Interim
President Allan Smith said. One thing
See REGENTS, Page 7
Kennedy inches closer, Ford says Forget it'
Teddy: Yea Jerry: Nay
From UPI and AP
BOSTON-Sen. Edward Kennedy,
reportedly telling colleagues he
definitely will run for president, predic-
ted yesterday he will win the'
Democratic presidential nomination if
he goes after it.
Kennedy, speaking at two Boston
high schools, told cheering students his
final decision on whether to enter the
race will not be "much of a surprise."
The latest word that Kennedy will
challenge President Carter came from
a source close to Sen. Jennings Randolf
(D-W.Va:).
T HE SOURCE said Kennedy
telephoned Randolf Thursday and told
him, "I'm going to run for president."
Randolf did not deny the report and
said he personally thinks Kennedy will
run now.
Kennedy press secretary Tom
Southwick said the senator is
discussing his thinking with a number
of colleagues but he "is not a declared
candidate."
But Kennedy's non-declared status
did not bother Maine's Gov. Joseph
Brennan, who became the first
Democratic governor to endorse him.
"I am convinced that Ted Kennedy is
the person to provide the leadership we
need and that he will be a candidate for
president," Brennan told a news con-
ference in Augusta, Maine.
See KENNEDY, Page 10
WASHINGTON (UPI)-Gerald Ford
announced yesterday he has made a
"firm decision" not to run for president
next year and encouraged his
Republican backers to choose one of the
10 men who are actively seeking the
GOP nomination.
"I have no intention of entering, or
permitting anyone else to enter my
name in any of the upcoming
primaries, nor will I be a personal con-
testant in any state convention," Ford
told a news conference on Capitol Hill.
"I WOULD reconsider my position
only if my party felt it was essential for
me to do so, or if unforseen circumstan-
ces developed," he said.
But Ford, who became president in
1974 when Richard Nixon resigned and
lost the 1976 election to Jimmy Carter,
said the likelihood of a 'brokered or
deadlocked GOP convention is "very
remote."
"I have given all these matters a
good deal of thought," he said, "and
have made a- firm decision not to
become an active candidate for the
nominatioA of my party."
FORD SAID that while he appreciated
friends who urged him to seek the
nomination and draft movements star-
ted on his behalf, all that should stop
now.
"I urge those who may have held
See FORD, Page 10
Ke,,,uied
Ford
promises no surprise'
bid doubtful in 1980
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the flu1ste'red Brinkerhoff. "I have to say, Mr.
Brinkerhoff, you sound a little bit like )Athletic Director)
Mr. (Don) Canham on that response," interrupted Regent
Sarah Power. At a loss for an answer, Brinkerhoff said
only: "Thank you."
Inching toward metrics
South Yemen, Burma, Liberia, and the U.S. A new defen-
se alliance? Hardly. These are the last four countries on the
earth which use the standard, of English, system of
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Private showing
Though it has T -
received generally psop~a,?/
good reviews, theAfWIL. W
film Rich Kids wasTO4 TH
none too popular at a
recent mid-week
showing at the Stateat
Theater. Two Ann r
Arbor women
arrived at the
group is in th~e most demand. Fresh from a concert date in
Detroit Tuesday, the group descended upon Chicago, where
some 23,000 fans were waiting to see (and hear) them. But
the Chicago Stadium holds only 19,000. The result: EWF
groupies crashed the gates and whipped rocks and bottles
at the band's bus. Twenty-nine were arrested. [a
On the insie
An analysis of the Florida presidential election caucus is
on the editorial page .. . a review of PTP's production of
Idiot's Delight is on the arts page . .. and sports has a story aboutj
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