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April 19, 1972 - Image 1

Resource type:
The Michigan Daily, 1972-04-19

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See Editorial Page


£id igaui

4,3 a t t4y

Cooler, with
chance of showers

Vol. LXXXII, No. 153

Ann Arbor, Michigan-Wednesday, April 19, 1972

Ten Cents

Ten Pages



U. .


hit for


excess pro its
WASHINGTON (N) - The chairman of the President's
Price Commission said yesterday that as many as eight to
10 per cent of the largest U.S. corporations may be making
illegal excess profits, thus risking punitive price rollbacks.
Chairman C. Jackson Grayson Jr. said consumers and the
U. S. Treasury would be beneficiaries from refunds and puni-
tive price reductions.
Grayson also said he may be forced to prescribe tight
controls on food prices to prevent rising food prices from
abotaging the Nixon administration's war on inflation.
He told the congressional Joint Economic Committee the
commission is considering de-controlling large sections of!
the economy altogether and
concentrating its limited man-
power on the largest price-
leading firms.



*bank tries
A group of Huron Valley Na-
tional Bank employes is currently
trying to unionize the company's
non-management personnel.
If the employe's efforts succeed
Sthe Huron Bank will be the first in
the state to unionize.
Organizers of the union, who
prefer to remain anonymous, cite
low salaries and racial and sex
discrimination as the primary
reasons behind the organizinge
"Many of the bank's employes
are wives of students," one or-
ganizer commented. "The bank's
management assumes they will
only be around for a few years
and therefore, they think they
can get away with paying them
tiny salaries." d
According to this same source,
starting salaries at the bank are
only $4,400 a year, and no blacks
or women hold any management
A manager, in this case, is de-
fined as anyone who has the
Apower to hire and fire personnel,
or influence recommendations for

Committee Chairman William
Proxmire (D-Wis.), responded to
Grayson's comments with an at-
tack on the entire Phase Two sys-
tems of wage and price controls.F
"Not only has the program not
slowed inflation so far," Proxmire
said, "the public has no confidence
that it ever will.".
Calling the price-controls pro-
gram a "pathetic failure", Prox-
mire said he was astonished at
Grayson's statement that so far
only $4,500 in total fines have
been levied against price violators.
"This tells us there has been no }
enforcement of the law," Proxmire
Rep. Henry Reuss (D-Wis.), saidf
that 51 large corporations, of 129
reporting, showed excess profit
margins. He asked Grayson if the
trend is similar among all big
firms and what the commission
is going to do about it.
Absentee ballots!
Absentee ballot forms along
with details on absentee voting
have been included on today's
Editorial Page.
Grayson said price reduction
rollbacks in triple amounts may
be ordered for asmuch as eight to
10 per cent of controlled business
firms and added, "Refunds will
be made to consumers where they
can be identified."
Where such identification can-
not be made, he said, the money

By The Assoiated Press
Intensive U.S. bo m bi ng
strikes apparently continued
throughout Indochina yester-
day, in the fourth day of re-
taliation against a three-week
old Communist drive into
South Vietnam.
Although miltary sources said
President Nixon had, curtailed the
heavy bombing raids to await a
reaction from Hanoi, Defense Sec-
retary Melvin Laird said in Wash-
ington there was "no substance"
to reports of bombing restrictions.
Associated Press 'informants
stuck to their report, however.
Laird refused to indicate whe-
ther bomb strikes are continuing
in and around Haiphong and Ha-
noi. "I am not going to outline
target areas," he asserted.




will go into the U.S. Treasury. l
The group has already contacted He promised that the rollback!
1e Office and Professional Em- program will be pushed most vig-
oyes International Union, in an orously and said the commission'
fort to obtain recognition as the will order price reductions even
arganing agent for the bank's when the accumulation of excess!
nployes. Organizers report that profits was not willful.e
rer 30 per cent of the workers The commission's job has been
ave signed union cards - and to maintain prices at a reasonnably
dis is enough support to gain a stable rate in order to combat in-_
earing before thedNational La- flation. Labor leaders have criti-
or Relations Board. cized the commission, however, for I
If the board decides that the allowing prices to rise while wages;


-Daily-Rolfe Tessem

ince to the music

signatures are valid, the bank's remain frozen.
employes will have to approve the Undor such a system the labor
union by a majority vote. Organ- leaders say. management can con-
izers say that they expect to get tinue to earn excess orofits. Fail-
as much as 80 to 90 per cent of ure to curb these profits prompted
the workers to join the union I the recent walkout of four labor
eventually. iendrs from the Pay Board, in-
"We have gotten a really good cluding AFL-CIO President George
response from most peoale." one Meny.
organizer said, "and at this noint Grayson acknowledged that ris-
we are optimistic about our chan- ing food prices could become a
ces for success." very serious matter if they con-
tinue to rise at the rate recorded
Union organizers say the bank's in February.j
management is aware of their ef- He said a special watch is be-
orts, but does not as yet take ing kept on food profit margins
hem seriously. to see if the rules are being vio-
They also say that in other at- lated.
tempts by bank workers to organ- The problem of rising food
Ize, management has "bought off" prices is a politically sensitive one
enough people to prevent unioniz- for the Nixon administration.
atgon. Government officials have been'
reluctant to cut prices on farm
Huron Valley Executive Vice products, however, for fear of los-
*President Herbert Norman dis- ing support in the farm states. In-
claimed any knowledge of the stead they have concentrated their
union's activities or even its ex- efforts on the 'middlemen' in-
istence. volved in food production.

Rock and roll music and warm temperatures attracted a large crowd of students to People's Plaza
yesterday afternoon. The Leaves of Grass provided the entertainment, and their solid rock beat in-
spired onlookers to get up and dance. Bands are scheduled to play on the plaza at noon throughout
the week if the weather stays fine.
Stuy shows race bias,
n local ja1l sentences

Anti-war Actions
For details of today's pro-
posed demonstrations and other
protest activities in response to
stepped-up bombing in Indochina,
see Page 10.
He repeated however, that air-
power is being used on both sides
of, and within, the demilitarized
zone and added, "Any area of
North Vietnam, as long as the in-
vasion continues, is subject to at-
Commenting on the North Viet-
namese offensive, South Vietnam-
ese Gen. Hoang Xuan Lam said
in an interview: "We keep killing
them, but they stay."
"They seem to like being killed.
Militarily, we are killing more of
them than they us," commented
the northern region commander.
The general added, "So militar-
ily, they made a mistake. But we
know this is not a military war
but a political one. They seek not
statistics but politics."
On college campuses in this
country, rallies protesting the cur-
rent bombing reached new levels
of militance.,
At least eight persons were tak-
en into custody in connection with
day-long demonstratons at the
University of Maryland, police
said, and at one point about 100
riot-equipped state policemen
moved in to break up a crowd of
about 1,000 students who blocked
U.S. Route 1.
At Princeton, some 800 students
voted to stage a strike to boycott
classes. In Cambridge, Harvard
demonstrators trashed the Center
for International Affairs and riot
police were called in.
The North Vietnamese have sent
their. troops into what U.S. officials
call "meatgrinder" operations be-
fore. The political aim this time
seems to demonstrate dramatical-
ly that Nixon's Vietnamization pro-
gram has failed.
The Communists are maintaining
the same positions they reached'
three days after their attacks be-
gan. They hold about 10 miles
south of the DMZ, and they don't
seem ready to leave.
War communiques showed the
ground war in the South to have
dwindled dramatically. There were
no reported major battles or white
hot crisis points.
See U.S., Page 10

-Associated Press
SECRETARY OF DEFENSE Melvin Laird and chairman of the
Joint Chiefs of Staff, Adm. Thomas Moorer, arrive yesterday at
a closed meeting of the Senate Armed Services Committee.
Laird said there was "no substance" to rumors that Nixon
ordered bombing of North Vietnam suspended.
Allende ees to
seize ITholdings.

A study conducted on the basis
of data from the Washtenaw
County Circuit Court over a two
year period reveals that blacks
receive m o r e prison sentences
than w h i t e s fOr comparable
The study also shows that a
great deal of inconsistency exists
in sentences handed down for
marijuana possession.
Bradley Schram, '72, a politi-
cal science major, collected data
on the 77 cases of marijuana pos-
session in which defendants were

convicted. E i g h t e e n involved
black individuals, 59 cases in-
volved whites.
Blacks who were convicted of
marijuana possession received
four times the number of prison
sentences given whites for the
same o f f e n s e, according to
Schram also studied 102 cases
of breaking and entering during
this same time period to see how
the racial breakdown compared
in other types of cases. He found
that there was not a significant
disparity in terms of number of
prison sentences-but blacks still
received harsher sentences.
In responding to the report,
Circuit Court Judge William Ager
says "A judge's first reaction,
I think, to figures like these is
to go on the defensive. He asks
what they mean. I can hardly
sentence more whites to prison
now because of these findings."
"But this is good research and
studies such as these help us get
an overview of what we are do-
ing here," Ager says.
According to Ager, the dispar-
ity between white and black sen-
tencing shows how disadvant-
aged persons must suffer be-
cause of their social position.
"The disadvantaged are often not
able to have the things we look
for when we give probationary
sentences," says Ager.
"Think how difficult it is for
a person living in an inner city

consistency in sentencing be-
tween different judges than was
the case for other crimes.
For possession of marijuana,
one judge was considerably more
disposed to giving probation-
ary sentences than the other
judges, according to the study.
Also, a time analysis shows
that judges' feelings can fluc-
tuate considerably. Schram di-
vided the twenty-eight month
period he studied into three
He found that while the num-
ber of prison terms given for
possession of marijuana to all
See STUDY, Page 10

SANTIAGO, Chile (I)-President'
Salvador Allende told a mass po-
litical rally last night of plans to
expropriate the Chilean holdings of
the International Telephone and
Telegraph Corporation (ITT),
which the government claims tried
to keep him from taking office in
The Marxist president said he
spoke with ITT officials "to arrive
at a nationalization agreement."
But he added, "They have totally
rejected our plan . . . because
they have an insurance policy in
the United States."
He said he would send an expro-
priation bill to the Chilean con-
Much of ITT's estimated $200
million in Chilean holdings is pro-
tected against foreign nationaliza-
tion by U.S. government insurance.
ITT owns 70 per cent of the
Chilean Telephone Company. The
U.S.-based conglomerate also has
an electrical equipment factory, a
cable and telex operation and two
Santiago hotels.
Allende called ITT's "a typical
case of imperialist business. ITT

left us only 33,000 telephones for
nine million Chileans," he said.
"They invested $28 million and
took $360 million out of the country
and left us with $35 million in
At a meeting in Washington last
week of the Organization of Ameri-
can States, Chile accused ITT of
"maneuverings aimed at disrupt-
ing Chile's constitutional process-
es." Chile's spokesman said the
firm enjoyed, at the least, the
acquiescence of U.S. government
Reports of the firm's alleged ac-
tivities came to light through a
series of documents made public
last month by columnist Jack An-
In that column Anderson linked
ITT with a plot to overthrow the
Allende regime.
Such activity on the part of large
corporations in Latin America is
not uncommon. United Fruit, for
example, was involved in several
attempts to overthrow the govern-
ment of Guatamala in the 1950's
to protect its investments.


Local ecology groups in a
fort to rouse students from
winter inactivity will this
host a series of programs
events in celebration of the1
annual Earth Week.
Activities for hikers, bikers
ecologically - minded citizens
be held throughout the wee
raise money and consciousnes
the new ecology campaign.
For local bike enthusiasts,
23 will bring a Bike-A-T

Week activities planned
such as friends, corporations, aiad
teachers - to pledge some rate
ni ef- per mile. Sponsor forms for par-
their ticipants are available at the EN-
week ACT office, the University Cellar,
and The Ecology Center, the Under-
third graduate Library, and the Fish-<:
and In addition, the Ann Arbor Bi-
will cycle League will bring Ann Ar-
k to bor's way a national Bicycle Week .:
s for May 1-8. Some of the events {
planned are a poster contest, safe-
April ty checks at area schools, and
'hon, bicycle repair clinics and classes.

y w - ....: me ,

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