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Vol. LXXXX, No. 50 Ann Arbor, Michigan-Friday, November 2, 1979 Ten Cents Sixteen Pages
TT U2'NTT~C A NI Pi TTUI~i-
0 1 l) "JEAl\ 1 0 UlXIII t U "L1011
Journal new outlet for undergrads
By BETH ROSENBERG
Because undergraduates are low on the academic
totem pole, their work is rarely seen by anyone but the
instructors paid to read it.
But some University students now have an outlet,
"The Michigan Undergraduate Journal of
Economics," a 25-page periodical designed to foster
undergraduate writing and research in all social scien-
"WE ARE interested in encouraging polished
writing, and critical thinking in economics, not as a
narrowly defined field, but rather as a multi-
disciplinary area that needs useful contributions from
all areas of the social sciences," said David Laverty, a
member of the student selection board.
The Journal is apparently the only such medium for
undergraduates, according to several sources.
Thirty-eight courses at the University - encom-
passing some 5,000 students - relate to Economics in
some form, managing editor Ken Buckfire said. The
senior Economics major explained that although it
bears the name of the Economics Department, the
book is not limited to concentrators in that area.
"WE WANT TO correct the conception that Econ. is
just quantitative and analytic. Econ. is very
humanistic and in actual practice is not as narrow as
sometimes taught," he said.,
The first issue of the Journal, which came out recen-
tly, contains articles ranging from "Anti-Trust in the
North Atlantic Political Economy," to "Relative
Professional Prestige as Perceived by Freshpersons at
the University of Michigan."
The publication serves as a reference for ideas and
models of technical papers. Laverty said that writing
for other undergraduates instead of for professors
could help focus and improve students' writing skills.
"If undergrads write (the articles), then other un-
dergrads may be able to understand them better and
become more interested in publishing," he said.
The submission deadline for the next issue of the
semi-annual publication is next Friday.
Laverty said he expects favorable responses toward
the publication by faculty and students because of the
increasing emphasis on writing skills and the freshper-
son composition requirement.
The Michigan Undergraduate
Journal of Economics
'journal encourages undergrads'
WASHINGTON (UPI)-The administration yester-
day proposed federal loan guarantees of $1.5 billion,
the highest guarantee ever offered a private cor-
poration, to the Chrysler Corp. provided it raises a
matching $1.5 billion independently.
In his proposal to Congress, Treasury Secretary G.
William Miller said the resulting $3 billion rescue
package should be enough to lift the threat of bankrup-
tcy from the nation's third largest auto manufacturer,
which employs 111,000 workers.
MEANWHILE, IN LANSING, Gov. William Milliken
announced a $150 million plan for helping the finan-
cially ailing corporation, which includes property and
vehicle purchases and a mortgage on the firm's
Highland Park headquarters.
The package was outlined in a letter to U.S. Rep.
James Blanchard (D-Mich.).
Milliken stressed the proposed Michjgan package is
contingent on adoption of a federal aid program for the
No. Three automaker.
UNDER A KEY element of the plan, state public
employee pension systems would provide funds for
extending a first mortgage at prevailing mortgage
rates on Chrysler's international headqudrters.
Another element, worth perhaps as much as $15
million, is purchase of Chrysler cars for use as state
Milliken noted Chrysler, which recently reported
record third quarter losses, provides salaries and
benefits exceeding $2 billion annually in Michigan and
pays more than $94 million in taxes.
"ELIMINATION OF those salaries and those tax
revenues would be utterly devastating to this state and
the people who live here as would be the soaring
welfare costs that would result," he said.
A key administration condition for the federal loan
guarantees was that Chrysler raise $1.5 billion on its
own, possibly from such sources as its unions, dealers,
banks, other creditors, states and cities where
Chrysler has plants and its stockholders'
In 1971 the government extended loan guarantees of
$250 million to Lockheed. In 1978 it pledged up to $1.65
billion in guarantees over four years to save New York
City from possible bankruptcy.
THE $1.5 BILLION proposal for Chrysler was double
the $750 million the administration suggested earlier
"This is a unique situation," Miller told reporters
"As a philosophical proposition we do not favor genera.
support for private corporations." But Chrysler's
failure, he said, would have "serious impact or
localities around the country... There would be a risk
of substantial unemployment, of economic distress
and this would affect our overall economic outlook."
It also would involve direct costs to taxppyers in.thE
form of increased unemployment compensation.
welfare payments, reduced local and federal taxes anc
potential federal liabilities under pension plans, Millei
MILLIKEN CONCEDED, in a news conference ir
Lansing that there may be some misgivings about thE
use of pension money to provide a mortgage fore
financially endangered firm.
He said his administration is "very, very sensitivetc
the fact that we're using public dollars."
"There is no question that the pension fund will bE
protected and must be protected," he said.
"I don't think any of us relishes the state getting in.
volved" in the situation, he said. "But the stakes ar
too high for us not to."
Gas, oil kicked
WASHINGTON (AP) - Wholesale
prices increased another one per cent in
October, less than the September in-
crease, but enough to signal more tough
going for inflation-weary consumers.
Wholesale prices had increased 1.4
per cent in September, which was the
worst for any month in nearly five
THE ONLY GOOD news in the
government's wholesale price report
yesterday was an 0.1 per cent decline in
food prices, the first drop in four mon-
ths. Food prices increased 1.8 per cent
But the easing of food prices was of-
fset by higher prices in other areas,
especially fuel, but also for 1980
automobiles. Gasoline was up 5.1 per
cent, while heating oil rose 4.7 per cent..
Increases in prices of goods at
wholesale stage eventually find their
way into higher prices at the consumer
level. This is especially true for such
things as autos and fuel.
THE LABOR Department said its
Producer Price Index for Finished
Goods, or goods at the wholesale level,
stood in October at 223.7 of the 1967
average of 100. That meant that goods
priced $100 in 1967 had increased to
$223.70 last month.
Wholesale prices were 12.1 per cent
higher in October than a year earlier,
and were up at an annual rate of 12.3
per cent for the first 10 months of 1979.
Theremwas little in the latest price
report to indicate any easing of in-
flation. In fact, prices of finished goods
other than foods increased 1.4 per cent
during the month, the most in five
PRICES OF autos were up 0.6 per
cent as the increases for 1980 model
autos began to be felt. The recent steep
rise in the price of silver was reflected
in a 39 per cent jump in the price of
John Early, a Labor Department
economist, said "November and
December could be pretty much a
repeat" of October.
A Commerce Department economist,
Ken Stokes, said he thought the October
increase "is pretty much consistent
with what we have been having for the
past few months ... It's not an en-
couraging set of numbers."
FACED WITH widespread evidence
that inflation continues to defy efforts
to curb it, the Carter administration
has given up hopes of reducing inflation
below 10 per cent by the end of the year.
If the trend continues, and consumer
prices rise by near 13 per cent for the
year, it will make 1979 the worst year
for inflation since 1946, when prices in-
creased 18.2 per cent after war-time
wage and price controls were lifted.
And if wholesale prices continue to
advance at a 12 per cent rate, it would
be the most since 1974, when wholesale
prices went up 18.3 per cent. Consumer
prices increased.12.2 per cent in 1974,
which until this year had been the worst
year for inflation since the end of World
Ma mie dies
Former First Lady Mamie Eisenhower, shown here in a 1977 photo
during celebrations marking Dwight,'Eisenhower's 87th birthday anniver-
sary, died early Thursday morning at Walter Reed Hospital in Washington.
See story, Page 2.
CALLS DORM TARRING 'NUISANCE':
Student sues Un
By NICK KATSARELAS
A resident of Alice Lloyd dormitory
has brought suit against the University
as a result of tarring oprations on the
dorm's roof which he claims has
produced "noxious fumes and smoke"
and made his room "uninhabitable."
Steve Furman, a Natural Resources
sophomore from Southfield, yesterday
filed a complaint in Washtenaw County
"THE TARRINGS are illegal, im-
moral, and the smoke is disgusting,"
said Furman. "My whole room smells
Furman complained that at times the
odor would be so bad he would not be
able to sleep in his room. He said he was
also upset becaue the tarring was to
have occurred this summer, but in-
Military coup topples
stead, began after the residents had
Furman lives on third floor of Palmer
House. His room is adjacent to the por-
tion of the roof which is being resur-
THE ROOF IS being tarred because
of leakage problems, according to Paul
Bowyer, coordinator of maintenance
for the Housing Office.
"We don't like to do roofing when
students are living there," explained
Bowyer. "But we felt there would be
serious structural damage if it wasn't
taken care of."
Bowyer said the tarring operation
was to have been completed by Sept. 1,
but was delayed because of a trade
union strike this summer.
THE REPAIRD operations are being
performed by Firebraugh and
Reynolds Roofing Co., a Novi firm.
The complaint filed yesterday named
the University and Firebaugh and
Reynolds as defendants. It stated the
tarring procedure is creating a health
See LLOYD, Page 9
By JULIE ENGEBRECHT
The music stopped yesterday, so
several University administrators got
up and changed chairs, setting the
stage for another, more important
move to come Jan. 1.
President-designate Harold Shapiro
began a two-month leave of absence
from the University administration
yesterday in preparation for assuming
..renaring for 'U' Dresidencv
the presidency at the beginning of next
year. Graduate School Dean Alfred
Sussman will take over Shapiro's old
job as vice-president for academic af-
fairs until a permanent successor is
SUSSMAN SAID yesterday he will
probably ask the Regents to approve
the appointment of an acting dean to
replace ,him, so his duties in the
graduate school are not neglected.
Shapiro plans to travel to other cam-
puses across the country during the two
months before he takes over as the
University's chief executive.
"Theatime is not supposed to bring
about any set of miracles," Shapiro
said earlier this week. "There are
specific people and places I want to
visit, but I'm really trying to visit a
series of ideas which will be relevant to
our own planning for the future."
ONE EXAMPLE he cited was at the
University of Washington, where the
administration had decided to place
emphasis on one area - the medical
See SHAPIRO, Page 6
Shapiro begins leave;
Sussman moves up
LA PAZ, Bolivia (AP) - A right-wing
army colonel seized power yesterday in
a pre-dawn coup against President
Walter Guevara, Bolivia's first'
democratically elected president in a
decade. Guevara had been in office less
than three months.
Students and workers opposed to the
takeover by Col. Alberto Natusch took
to the streets of the capital, hurling
rocks at armored cars. The soldiers
opened fire, and police sources and wit-
nesses said at least five civilians were
killed and dozens wounded.
Army commanders in the major
eastern cities of Cochabamba and San-
ta Cruz declared their support for
Natusch, it was reported by
newspapers in the two cities and by
GRADUATE SCHOOL Dean and Interim Vice-President for Academic
Affairs Alfred Sussman discusses his new job. He will serve in the interim
post until a successor to President-designate and former Vice-President
for Academic Affairs Harold Shapiro is selected.
See MILITARY, Page 5
kl4d IV.. as -. a.
have their chance at a month-long smoking clinic which
begins Tuesday, Nov. 6. The clinic will use the "cold
turkey" method, which has been shown to have the
"greatest amount of success," according to instructor
Joyce Meckler. At a noon informational meeting at the
LS&A Bldg. yesterday, Meckler stressed that in addition to
undergoing the withdrawal process, the group also will
discuss how to deal "more effectively" with the changes in
their lives that go along with quitting smoking. Meckler
said participants need a positive attitude and a willingness
to participate in group discussions. However, she added
that "ambivalence is normal" so she uses "a day-by-day
each month, so if you decide to quit at a later time, you can
still try the program.
New bonuses From Ma Bell
Michigan Bell yesterday
introduced two new ser-
vices to give sports fans
and astrology buffs the
latest scoop on what's hap-
pening in sports and the
stars. According to Warren
AlInpat. Miehigan Bell
or Chicago without dialing out-of-state. Alexander said in
the last nine months, Michiganders made about 600,000 long
distance calls to sports and astrology numbers in New York
City and Chicago. One predictable hitch to these new ser-
vices - each and every call to Dial-A-Horoscope or Spor-
tsphone costs 15 cents plus any charges for calling long
distance within the state.
On the inside
The sports page has a scouting report on Wisconsin's
football team.. . a look at the "Charming Prince of Rock
and Rnll" i on the arts nag... an article on the new gold.
i }'r f l !1 A