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September 14, 1974 - Image 1

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Text
Publication:
The Michigan Daily, 1974-09-14

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I1XON HELD
TO ACCOUNT
See Editorial Page

Y

Sir&i Ar

DAitbr

SPORTING
High-63
Low-S8
See Today for details

Vol. LXXXV, No. 9 Ann Arbor, Michigan-Saturday, September 14, 1974 Ten Cents Ei
SIMON ISSUES REPORT

ght Pages

rUCE PWS APPENCA'Ld4MT Y
Fojtik files rifled
It had all the smells of another Watergate.
Around 4.30 a.m. yesterday burglars slipped into
the apartment of Washtenaw County.Commissioner
Kathleen Fojtik (D-Ann Arbor) and stole a folder
of press clippings after rifling Fojtik's files. The
folder, according to Fojtik, is humorously labeled
"scandal'' andcontains a collection of newspaper
articles that cast her in a bad light. The intruders
emptied her desk, dresser drawers and file cabi-
nets onto the floor of the apartment and left the
refrigerator open. "Maybe it was just people look-
ing for drugs," said Fojtik, a liberal who is up for
re-election this November. "But it certainly does
seem strange." The burglars left a television and
IBM electric typewriter untouched. Fojtik was out
of town when the break-in occurred.
SGC balks
Student Government Council continues to hedge
on its view of the LSA faculty's controversial sup-
port for scholarships on the basis of academic abil-
ity rather than financial need. At the Thursday
night Council meeting, SGC voted down two reso-
lutions -- one "applauding" the faculty stand,
and one "abhorring" it. Several radical and non-
white campus political groups, as well as the LSA
student government, say they consider scholarship
policy a critical issue and will take action if the
faculty position is adopted by the University.
Special bus
A special football game shuttle bus will be pro-
vided today by the Ann Arbor Transportation Au-
thority rA 'TA) betweenthe corner of Fourth Ave.
and W=I ' and the corner of Potter and Belmar
(one blo:k west of the stadium). Marked "U of M
Stadium," the special bus will be. leaving William
at the northwest corner of Fourth Ave. at 12:15
p.m., 1:15 p.m. and 1:45 p.m. Regardless of origin
or destination, one way fare for this service is 25
cents. AATA monthly passes or AATA discount
tickets may also be used. Following the game, the
special bus will be leaving the corner of Potter
and Belmar at 4:00, 4:30 and 5:00 p.m.
Dean-hunting
"We haven't named a new dean yet, but we did
not expect to at this time," Prof. Arthur Burks of
the LSA Dean Search Committee says. Formed af-
ter Dean Frank Rhodes became University vice
president for academic affairs early last spring,
the seven faculty members and three students be-
gan their search last April. The initial 140 appli-
cants are now being narrowed to 12 names. This
list will then be cut in half and these remaining six
names submitted to President Robben Fleming and
Rhodes by the end of December. Fleming will
make the final decision.
Happenings .*
kick off with this season's first home football
game against Iowa at 1:30 p.m. today . . . but if
chess is more your style, stop in at the Michigan
Union where you'll find the Second Ann Arbor
Classic chess tournament beginning at 10 a.m. and
the Third Michigan Beginners Open beginning at
9 a.m. For those who have never played chess
in a nationally rated tournament under U. S. Chess
Federation regulation, now's the chance . . . then
at 8 and 11 p.m., Peachy Cream Productions will
tap dance'through "Tapioca Holiday" in the Half-
way Inn of East Quad. Admission is $1.75 . . . and
this evening at 8 p.m., Norma Diamond, associate
professor of anthropology, will speak on "Why the
Chinese are Criticizing Confucius" and present
color slides of China in the West Lounge of South
Quad.
0
Hooker in exile
The State Department yesterday told former
prostitute Xaviera Hollander that she is undesir-
able. The 31-year old Dutch-born woman, who won
fame and fortune with her racy autobiography,
The Happy Hooker, needs State Department ap-

proval to come back and live in the United States.
Polarization
Cleveland Municipal Light has painted its utility
poles blue, and the city's Fine Arts Advisory Com-
mittee chairman is seeing red. The arts committee
chairman, Joseph McCullogh, says the color is in-
appropriate and detracting, adding that the poles
are supposed to blend into the general urban set-
ting, not "stand out like giant exclamation points."
A city official said colored poles are necessary
to distinguish Municipal Light's poles from other
poles. He also said the color matches the depart-
ment's official color as well as that of Cleveland
Transit System buses, adding, "We could have -
painted them. yellow, you know."
On the inside .. .
Alan Toth analyzes the nation's civic faith on
the Edit Page . . . Sports Page looks at the bowl
races in today's college football action across the
rnntrv .and ast Oa's nroduction of "'Tanio-

Nob
-NO
Crowds
protest
Nixon
pardon
By ROB MEACHUM
Close to 400 people turned out
yesterday on the Diag to pro-
test the executive pardon given
to former president Richard
Nixon.
The rally, sponsored by the
Ad-hoc Committee Against Par-
don, featured some 15 speakers
including Democratic Congres-
sional hopeful John Reuther and
Bernie Klein, a Common Cause
representative. Each speaker
addressed the applauding, pre-
dominately anti-Ford crowd, for
about five minutes.
"THERE WAS obviously an
understanding, or an agreement
between Nixon and Ford,"
shouted Reuther. He added that
N i x o n "committed offenses
against the Constitution" and
that the nation has "lost a mea-
sure of our Constitution" by his
pardon.
Reuther noted that his oppon-
ent in the upcoming November
election, Marvin Esch (R-Ann
Arbor), was not present. A
statement by Esch was to have
been read at the rally but nev-
er arrived.
Klein termed the pardon "a
blow to the criminal justice sys-
tem."
STATE REP. Perry Bullard
(D-Ann Arbor), who is running
f or re - election. exclaimed,
"Ford has sabotaged democra-
See PARDON, Page 8
Gill

salt

to

inflation

predicted
Econ advisors see
nine per cent rate
WASHINGTON (A - Treasury Secretary William Si-
mon said yesterday he expects inflation to continue at
about current rates for the rest of the year, thereby estab-
lishing a virtual consensus among top administration
economic advisers that little relief is in sight.
Simon estimated that by the end of the year prices
will still be rising by nine per- cent or more. He thus
echoed earlier analyses from Alan Greenspan, chairman
of the President's Council of Economic Advisers, and
White House economic coordinator Kenneth Rush, who
is slated to become ambassador to France.

Doily Photo by PAULINE LUBENS
A LOCAL RESIDENT pauses to admire a collection of photographs highlighting Ann Ar-
bor's historical buildings at a fund-raising reception for the restoration of the Cobblestone
Farmhouse. Architecture and Design Profs. L ester Fader and Harold Himes took the pic-
tures of the 19th and 20th century buildings.
A touch of the old days
starts farm fund raiser

By SARA RIMER
The Haymaker's punch was flowing, the
coventry tarts were fast disappearing, and
the down-home strains of old dance tunes
started feet tapping laft night at the Univer-
sity Museum of Art.
Two hundred people dressed in contempor-
ary, formal wear attended the museum's 19th
century-style reception planned to kick-off a
fund-raising drive for the restoration of the
Cobblestone Farmhouse in Burh Park.

"THE PIGTOWN FLINGERS," strumming
out their old-time notes on instruments like the
fiddle, hammered dulcimer, and mandolin
banjo, eased any of the uncomfortable formal-
ity that can accompany benefit exhibitions
and their well-heeled patrons.
Smiling at the lively tunes, Cindy Quacken-
bush commented, "The music takes a little
of the stiffness out of this."
According to Cobblestone Restoration Asso-
See OLD-TIME, Page 2

RUSH INDICATED in an in-
terview that the inflation rate
might still be above 10 per cent
at the end of the year. "The
picture is not as optimistic as
it was two and three months
ago," he said.
Greenspan had said in this
week's economic summit pre-
liminaries "in the immediate
period ahead, it does not appear
as though the inflation rate is
turning down."
Theestimates, coming after
back-to-back monthly wholesale
price increases at annual
rates in excess of 40 per cent,
amounted to at least tacit con-
firmation that the government
is having- a tough time reining
in the current inflation.
C O N S U M E R prices now
stand 11.8 per cent ahead of a
year ago.
After last year's 8.8 price in-
crease, administration econo-
mists forecast an inflation rate
of seven per cent for this year.
The estimate supposed declining
interest rates and a, tailing off
of the food and fuel increase,
which powered most of the '73
inflation.
However, after the year start-
ed off at a 12 per cent rate,
a d m i n i s t r a t i o n econ-
omists boosted their forecast
and projected an inflation rate
which would slow to 8 per cent
by year's end.
BUT IN A SPEECH prepared
for delivery in Phoenix, Ariz.,
Simon said, "At the end of this
year, after the food and fuel
and other special factors have
receded, our price level will
probably still be rising by some-
thing in the neighborhood of
nine per cent this year. perhaps
more.".
The speech was prepared for
the Republican Trunk 'n Tusk
Club and released in Washing-
ton.
Simon attributed the current
inflation primarily to political
decisions: increased spending
and easy money. He reaffirmed
his support for the current ad-
ministration policy of reduced
spending and tight money to re-.
duce demand and thus relieve
the pressure helping push up
prices.
He ALSO endorsed elimina-
tion of savings account interest
ceilings, encouraging consumers
to spend less and save more.

Major oil
exporters*
et
hike tax,
royalties
VIENNA, Austria 0) - The
world's 13 major oil exporting
countries agreed yesterday to
boost taxes and royalties on
crude oil by about 33 cents a
barrel.
In addition, some unidentified
members of the Organization of
Oil Petroleum Exporting Coun-d
tries (OPEC) announced a "vol-
untary cut-back in their pro-
duction level," apparently in
part to sustain prices during
the current period of excess
supply.
MEANWHILE, the Federal
Energy Administration (FEA)
said yesterday that oil com-
panies may have overcharged
the public $100 million or more,
using an obscure regulation
which was not supposed to be
adopted.
FEA General Counsel Robert
Montgomery told reporters the
agency had deleted, in drafting
oil allocation regulations, a
loophole which might be inter-
preted to let the companies col-
lect twice for the same oil.
But Montgomery said the pro-
vision somehow crept back into
the final regulations published
last Jan. 15.
JAMSHID Amouzegar of Iran,
unofficial spokesman for the
oil exporters, insisted the 33-
cent hike should not be passed
on to consumers. However, most
oil companies have clauses in
contracts with their customers
that pass such increases along
automatically.
OPEC also decided that start-
ing next January "the rate of
inflation in the industrialized
countries willautomatically be
taken into account with a view
See OIL, Page 8

reached

in

Chicago,

declines

comment

on

suit

By JEFF SORENSEN
Former Student Government
Council President Lee Gill was
contacted last night by The
Daily-the first time he's been
officially reached in six months
-following Thursday's SGC vote
to press criminal charges
against him.
Gill is charged with alleged
embezzlement of nearly $16,000
in Council funds during his
tenure as president' from May
1973 to January 1974.
"I DON'T KNOW anything
about it; I've never heard of
the suit," Gill responded. He has
been sued twice previously by
SGC in actions demanding an
accounting for and restitution
of a total of $15,834.
Soon after the first suit was
filed in March, Gill left town
and could not be found by SGC
officials, according to Council
attorney Tom Bentley, despite
repeated attempts to serve him
with the summons. The second
suit, filed in August in Circuit
Court, permitted efforts to serve
Gill with the summons outside
the state of Michigan.
The civil suits charged that
Gill allegedly opened accounts
at five local banks and spent-
or failed to vouch for-huge

sums of Council money.
THE EASE with which Gill
was 1 o c a t e d yesterday has
raised questions about the ser-
iousness of SGC attempts, prin-
cipally by eBntley and President
Carl Sandberg, to contact Gill
or serve him with a summons
during the past six months.
Although Gill has been acces-
sible during much of that time
period, Bentley admits that "to
the best of my knowledge, he
hasn't yet been served."
Gill's phone number and ad-
dress are readily available and
are listed in the current Chi-
cago telephone directory, and
he has been employed by the
Illinois Department of Correc-
tions for muckt of the six
months.
GILL IS about to be hired at
the Office of Planning, and Re-
search of the Department of
Corrections in Chicago, accord-
ing to supervisor Bob Howard,
who is apparently unaware of
the charges b e i n g pressed
against Gill.
Bentley admitted' that the
data on Gill's current address
and place of work is "partially
new to me." He also revealed
that "he (Gill) has been back
here (Ann Arbor) at times. I

haven't personally seen him, but
others have reported that they
have-and I have no reason to
doubt them."
However, Bentley stated that
after filing the Aug. 7 civil suit,
SGC contacted officials at the
Cook County Sheriff's Office in
Chicago, and that the office
sent word recently that it was
unable to locate Gill.
"WE SENT a copy of the
summons and a complaint to
the proper persons in Chicago-
and they've been unable to find
him," Bentley explained.
Bentley declined comment on
See LEE, Page 2

Govt. auditors say GSA had
no right to give ixon funds

WASHINGTON 0P) - Govern-
inent auditors have ruled that
the General Services Adminis-
tration (GSA) had no authority
to spend money for former Pres-
ident Richard Nixon's transition
to private life without first get-
ting an appropriation from Con-

Gill

Jacobs,,
sGc'

Schaper deny guilt i~n

gress.
As a result, the GSA obtained
approval yesterday to use mon-
ey from a special fund appro-
priated by Congress for Presi-
dent Ford.
GOVERNMENT documents
show that the new administra-
tion authorized spending up to
$450,000 for Nixon a week before
it asked Congress to appropriate
funds for the transition.
The GSA has already comn-
mitted about $6,000 of that
money; but Comptroller General
Elmer Staats said it wasn't
authorized to do so.
President Ford's request for
$850,000 to help Nixon's transi-
tion to former-president status
ran into stiff congressional op-
position when GSA tried to de-
fend the amount in Senate and
House hearings this week.

director in San Francisco.
"THIS MESSAGE constitutes
your authority to proceed to
obligate and disburse" up to
$450,000 to cover obligations re-
lated to the Nixon transition, the
message said.
Seven days later, Ford asked
Congress for $450,000 under the
Presidential Transition Act and
$400,000 under the Former Pres-
idents Act to assist Nixon. The
amount, more' than twice what
former President Lyndon John-
son received in a comparable
period, sparked protests from
members of House and Senate
appropriations subcommittees
considering the proposal.
Sampson said Thursday the
GSA already has ordered $6,000
worth of stationery for Nixon
to permit the former President's
office to begin answering more
than 350,000 pieces of mail he

X42, 000

misuse'

case

By DAVID BURHENN
Former Student Government Council President Bill Jacobs
said last night that he was "shocked" by charges that he and
former Council treasurer David Schaper mishandled some $42,000
in student funds.

with the lawsuit Thursday night. The former treasurer told one
SGC member, "I rigged elections, and I screwed people left and
right, but I never, never, took any money."
According to SGC sources, the investigation into the financial
ffir: of a T s he Am :nitrnfnn aval tsm lar ira- tup

I

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