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October 02, 1974 - Image 1

Resource type:
The Michigan Daily, 1974-10-02

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See Editorial Page


41it 6


See Today for details

Vol. LXXXV, No. 24

Ann Arbor, Michigan-Wednesday, October 2, 1974

Ten Cents

Ten Pages



'U' Cellar to

fight state


f F 1CSEE tEvS HAPP~rt 0C L N lY
Register to vote
Students, this is your city. You eat here. You
sleep here. You're taxed here. You live here. So,
register and vote here. Today through Monday is
"Voter Registration Week." If you want to be able
to vote in the Nov. election, you must register by
Oct. 7. Registration sites include: the Union, today
through Friday, 1-4 p.m.; Ann Arbor Public Li-
brary, located at the corner of William and Fifth
Ave., today through Friday, 9 a.m.-9 p.m.; and,
City Hall, located at the corner of Huron and Fifth
Ave., today through Saturday, 8 a.m.-S p.m.
Aid Hondurans
The Student Government Council (SGC) office
is serving as a collection place for clothes - pre-
ferably summer weight - shoes, blankets and
other dry goods, to be sent to aid the Honduras
victims of hurricane Fifi. The SGC office is lo-
cated on the third floor of the Michigan Union,
Rm. 3909, and is open Monday through Friday,
8 a.m. to 5 p.m. "It seems like a worthwhile
thing," says Calvin Luker, director of student

The University Cellar and its attorney are
presently scrambling to win an appeal of a state
ruling which could cost the student bookstore as
much as $50,000 in back taxes.
If Cellar attorney Raymond Clevenger loses his
case, the ruling could also jeopardize the tax
shelter offered by the University to its four other
big "auxiliary corporations" - the University
Club, the Board in Control of Intercollegiate Ath-
letics, the Union, and the Lawyers Club.
AT THE HEART of the issue is a debate on
definitions: while the Cellar and the other four
corporations all claim they are well within Uni-
versity control, the State Tax Commission has
ruled that the Cellar and the U Club are inde-
pendent, taxable corporations.

In a September 1973 decision, the tax board
ordered the bookstore to pay state personal prop-
erty taxes back through 1971. Last August, the
board specifically assessed the Cellar for $33,000
in 1971-72 personal property taxes.
The Cellar, the commissioners stated, "is not
the property of the University of Michigan; the
University of Michigan is not in control of the
corporation, owner of the property."
THREE ASPECTS of the Cellar's financial
status raise serious questions about the store's
independence from the University:
A In 1969, the University provided the store
with $100,000 from the University Parking Fund
-money earmarked for use as starting capital.
The money came in the form of a gift.
* One main source of ready cash for the Cel-

lar is a $5 fee assessment for all new students.
The money is a loan, refundable when a student
graduates. According to University Counsel
Roderick Daane, the assessment is directly un-
der the Regents' control: "If they wanted to,"
says Daane, "they could terminate it."
" The Cellar's charter stipulates that the Re-
gents can disband the entire store if they deem
it "mismanaged." Should that occur, the Univer-
sity would assume control of the Cellar's assets.
CLEVENGER is challenging the taxation order
in the state appeals court with a double-barreled
argument. First, he contends, the Cellar's finan-
cial status and charter tightly connect it to the
University, and place the store under the con-
trol of the Regents.
The second half of the Cellar's case is the

x ruling
charge that the state tax board bungled its hand-
ling of the issue and failed to follow due process
of law.
In its report, the commission said its tax as-
sessment was based on a 1971-72 Cellar asset
figure of $600,000. As Cellar representatives point
out, that figure is based only on "ballpark" esti-
mates - but the commissioners blamed the
failure to get better information on the Cellar.
THE BOOKSTORE failed to submit detailed
figures, the commission stated, and a subpoena
for George Isaac, president of the Cellar's board
of directors, was never answered.
Clevenger denies Cellar neeligence. He ex-
plains he refused to hand over financial details
See CELLAR, Page 7








In an effort to make student counseling services
more centralized and efficient, the Office of Stu-
dent Services (OSS) is taking the Mental Health
Clinic (MHC) out of Health Services, and putting
it into the Student Counseling Services of OSS. The
administrative change was made official yester-
day, but Donna Nagely, director of the new coun-
seling office, says that until both services are
moved, they will continue to act separately as
they have always done.
CCEW scholarships
Applications are now being accepted for 20 schol-
arships to be presented this spring by the Center
for Continuing Education of Women (CCEW), 330
Thompson St. Women whose education has at some
time been interrupted for at least 12 consecutive
months and who are continuing a degree program
are eligible for the awards of $500 to $2,000. Appli-
cants may be undergraduate or graduate stu-
dents, full or part-time.
Happenings.- -
. . . include several Indochina Peace Campaign
(IPC) activities today. Beginning at 9 a.m. and
continuing until 4 p.m., IPC will display a tiger
cage on the diag and operate a literature table in
the Fishbowl . . . Then John Whitmore, professor
of Vietnamese history, will speak at 2 p.m. in Rm.
25, Angell Hall . . . And at 3 p.m. in Aud. 3 of
MLB, the slide show "A Question of Torture" will
be shown . . . But if you happen to miss this show-
ing, it will be shown again at 8:30 p.m. in Alice
Lloyd's Klein lounge . . . At 4 p.m. in Rm. 3000 of
the School of Public Health (in the old biildina,
a slideshow entitled "Health and the War" will be
shown and a discussion will follow . . . The Ad-
visory Committee for Recreational, Intramural
and Club Sports will meet at 3:15 mn.m in Crisler
Arena . . . At 4 n.m. Prof-ssor James Wispman of
the classical studies and historv dennrtments and
Kelsey Museum of Archaeology will lecture on
"Five Years Excavations at Stobi. Macedonia,
1970-74" in And. A, Angell Hll . . . Also at 4 n.m.
everyone is invited to an pfternnon tea at Presi-
dent Flemine's house on S. University . . . At 7
p.m. von can meet the Democratic candidate for
the State Senate, Peter Eckstein in the West
Lounge of South Quad . . . Or perhaps you feel
like having your say aboit the city's celebration
of the up-coming national bicentennial. If so,
there's a meeting sponsored by the Ann Arbor
People's Bicentennial Commission at 7:30 p.m. in
Pm. 126, East Ouad . . . And, fin-llv, the Proiect
Community Child Care and De-elonment program

THREE SPECIAL PROSECUTORS for the Watergate cover-up tri al arrive at U.S. District Court in Washington yesterday. From
left, the attorneys are Richard Ben-Veniste, James Neal and Jill V olner. The trial got off to a slow start with Judge John Sirica be-
ginning the jury selection process and predicting the proceedings could last past the Christmas holidays.

Watergate cover-up case
went to trial yesterday with
the judge predicting it will
be months before the jury
renders its verdict upon
men who once sat in the
high councils of govern-
ment with Richard Nixon.
"Every effort will be
made to conclude the trial
before the holiday season,
but this cannot be guaran-
teed," U.S. District Judge
John Sirica said on the first
day of the time-consuming
process of electing a jury.
BY DAY'S END the first pool
of 155 prospective jurors had
been whittled to 65 and each
one will be questioned in more
detail and privacy tomorrow.
In the meantime, a second panel
of 175 will go through the initial
weeding-out process today.
Before Sirica as defendants in
a criminal conspiracy case were
three men once counted as
among the most powerful in
government, John M i t c h e 11,
Richard Nixon's law-and-order
attorney general; H.R. "Bob"
Haldeman, Nixon's chief of staff
and John Ehrlichman, through
whom all domestic programs
Along with co-defendants Rob-
ert Mardian and Kenneth Par-
kinson, who were employed by
the Nixon re-election commit-
tee in 1972, they were accused
of trying to hide. responsibility
for the Watergate break-in
through "deceit, craft, trickery
and dishonest means."
AS THE defendants whiled
away their time writing letters,
doodling or talking with friends,
Sirica heard and excused 90
jury prospects who asked to be
let out of service.
They pleaded mostly the care
of children or home or problems
of health. With only a handful
of exceptions, the judge accept-
ed the excuses.
The remaining 65 then under-
went mass questioning for an
hour and a half, asked if they
or any member of their family
ever had any dealing with near-
See COVER-UP, Page 10



for student

Two national movie distribu-
tors stated yesterday that they
may sue the University in an
effort to collect substantial
debts from the now-defunct stu-
dent film group Friends of
In a related move, the Stu-
dent Organizations Board of
Student Government Council
unanimously voted yesterday to
void reservations Newsreel had
held on campus auditoriums

through the rest of this term
and open up the space to other
film groups.
"WE DON'T want to sue the
University, but if it comes to it,
we will," asserted Kirk Karhi,
Midwest sales supervisor for
New Line Cinema Corp.
"We have been considering
legal action, and chances are
at the moment we will sue,"
said Bob Burrs, assistant de-
partment head of Warner Bros.'

may si
f 0
flm d(?
non-theatrical sales division.
Lawyers for Warners and
New Line met in New York
yesterday to discuss the possi-
bility of filing joint legal ac-
tion against Newsreel, the Uni-
versity, and Community Media
Projects, Inc., Karhi reported.
ject (CMP) is a non-profit me-
dia collective affiliated with the
Newsreel organization. Glen
Allvord, treasurer of Newsreel,
serves as vice-president of CMP.
Karhi indicated that he also
expects two other major dis-
tributors,tRBCtand United Ar-
tists, to join in any court pro-
ceedings initiated by New Line.
Nevertheless, University Gen-
eral Counsel Roderick Daane
brushed off the threatened legal
action. "Any damn fool can
file a lawsuit, but it's quite
clear that the University has no
obligation," Daane commented.
that the University and the Stu-
dent Organizations Board had
"fallen down on their job" of
looking after the financial af-
fairs of student groups.
Meanwhile, a Newsreel state-
ment published in this week's is-
sue of the Michigan Free Press
in effect demanded that the



University cover the organiza-
tion's outstanding debts.
"We assume that the corpor-
ation (the University) is going
to pick up the tab, and pay
those commercial distributors,"
the statement said. "Let the
corporations fight it out; they
can well afford it, however it
turns out."
N E V E R T H E L E S S,
Newsreel asserted that it was
"ready to assume our organiz-
ational financial obligations" if
a list of six prerequisites, in-
See 'U', Page 7

GEO to
in wage
The Graduate EmployesdOr-
ganization (GEO) has moved to
file suit against the University
over its refusal to grant a
promised eight per cent pay
GEO, which represents teach-
ing fellows and research assist-
ants, claims that the University
made the promise during the
union's efforts to organize in
order to discourage unioniza-
tion, and that failure to keep
the promise violates state law.
BUT THE University claims
that the promise, which was
made by former Vice President
for Academic Affairs Allan
Smith last February, was made
before the union was recog-
nized, and therefore is no longer
See GEO, Page 2
o i
os 1

'Values' speaker
warns of greed

Interns at


is meeting

at 8 p.m. in the Kunzel Rm. of the

Dead or alive?
Edith Smith, of Philomath, Ore., says she feels
remarkably well for having been dead nine months,
Smith, operator of a tavern here, recently received
a notice from the Oregon Board of Revenue stat-
ing she had died Jan. 7, 1974. The state wanted
to know if she hqd git working, inasmuch as she
was dead, or if her estate would continue opera-
tion of the tavern. Smith had a few questions of
her own. She wrote the Department of Revenue
a letter asking, "Was my death accidential and
can I collect double indemnity? I'm past 60, my
husband is past 62 and my mother is 87," she con-
tinued. "My death came as a nasty shock to peo-
ple our age. Should we seek monetary compen-
sation for our ment~a anguish from you or your
On the inside . -.
. . . The Edit Page hoses a commentarv by Clif-
ford Brown on racism, liberalism in the IJniver-
sity . . . Jeff Schiller writes about the IHeisman
trophy race on the Snorts Page . . . And on the
fifth page we have a combination of Food and

"A society that puts profit
maximization before all other
concerns is doomed," Nobel
laureate George Wald warned
a Hill Aud. audience yesterday
in the opening speech of the
University Values' Year lecture
"We have eno'ieh information
to cope with all the things that
are threatening our lives and
the lives of our children. We
could begin to cope with them
ri-ht now, but we can't while
we're maximizing profits," Wald
AS AN alternative Wald sug-
gested that universities no long-
er pursue research only, but
begin to participate actively in
the world's nroblems.
Wald contended that the re-
action of universities to prob-
lems was "almost a reflex, 'let's
do research. The end of the
world is coming? Let's do Pro-
ject Apocalypse and get $2 mil-
lion from the National Science
Foundation. We'll put out a re-
port just before the end.' "

e Ine
Interns and resident physi--
cians at University Hospital
began. a work slowdown today
in an attempt to reach a new
contract agreement.
The action will not affect
basic patient care, according to
Dr. Robert Soderstrom, presi-

work slowdown

dent of the House Officers As-
sociation (HOA).
SODERSTROM said that the
nearly 500 doctors represented
by the HOA will refuse to per-
form "a lot of the clerical pro-
cedures that we've been re-
quired to do, such as signing
Medicare and Medicaid forms,

Job program to aid inmates

and other billing requirements
needing physicians' signatures."
Soderstrom also said that the
HOA would set up picket lines
during "peak traffic hours 'in
front of the hospital's main en-
The issues separating the
HOA and the University center
on salaries, fringe benefit pack-
ages, and working conditions.
NEGOTIATORS for the two
parties will meet this evening,
for the first time in weeks, to
discuss terms of a new con-
tract with a state mediator.
The doctors had been work-
ing on day-to-day extensions of
the old pact, which expired
Sept. 1. The HOA officially end-
ed that extension Monday to
begin their slowdown today.
Soderstrom said that the na-
ture of the proposals off3red
by the University tonight would


commented, "All I can say is if
that's what you come up with
the world is waiting for you-
the world of power."
Wald also told of a friend of

An Ann Arbor-based program
intended to help inmates of the
Adrian Training School for ju-
veniles make the transition to
life on the outside will enter a
10-day trial period this month.

foster parents. They will be
trained intensively for a day in
child care techniques, and will
then spend the rest of the week
working five hours a day at
Project Community child care
centers. They will be paid min-

mine whether they are ready
to be released to their homes.
The h e a r i n g outcomes will
weigh heavily on individual per-
formance evaluations to be pre-
pared by the director of the
program, Larry Tarkowski.

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