TAKING BACK THE NIGHT See editorial page Ninety Years of Editorial Freedom l lalig BLUSTERY See Today for details 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 { rf : f ....:....:....... ff f b, 1 :: f::y:F: ii:Li}:! ' i : :"iiiii is ?- i:'::'i:?ti:ti?::":::::i ;::;_ . . ":,". :.-:..:: a 4 0P f<..:. f.r. Je :"f,...:.:.::": : e :xx e e y a !r s i t 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 mPl~f ciiran, at .vprvnp l ncp smrr ir ina ncr .- 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 I i