CHRYSLER See editorial page 4tE Y43 Ninety Years of Editorial Freedom f43aitI * I I UNEXCITING See Today for details 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- ces. "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 Larerty. . 'journal encourages undergrads' Feds: Bail out - liIUILU t,, 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 lottery prizes. 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 year. "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 said. 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 years. 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 in September.r 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 up Oct. other than foods increased 1.4 per cent during the month, the most in five years. 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 flatware. 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." prices 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 War Ii. AP Photo 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 Circuit Court. "THE TARRINGS are illegal, im- moral, and the smoke is disgusting," said Furman. "My whole room smells like smoke." 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 Bolivian government iversity stead, began after the residents had moved in. Furman lives on third floor of Palmer House. His room is adjacent to the por- tion of the roof which is being resur- faced. 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 hazard. 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 Shapiro ..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 selected. 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. S~i r #-40Sw/ i }'r f l !1 A -1 I '