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October 15, 1974 - Image 1

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The Michigan Daily, 1974-10-15

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SGC
ELECTION
See Editorial Page

Y

1 t9Y

Dait
Ten Cents

BLUSTERY
High- 5s
Low-35
See Today for details

Vol. LXXXV, No. 35

Ann Arbor, Michigan-Tuesday, October 15, 1974

Eight Pages

f

' IFYo E WS HAPPLCALL trNLY
Surprise visit
Vice President for Academic Affairs Frank
Rhodes left his posh office yesterday morning and
returned to the trenches when he gave a lecture
on the early evolution of life to a Geology 117 class.
'It keeps me sober," Rhodes said jokingly of his
teaching stint. "But I don't know if it does the stu-
dents any good." More seriously, the former pro-
fessor commented that he would like to teach a
course regularly but, doesn't have the time be-
cause of the administrative work he must handle.
0

AF
By BARBARA CORNELL
Consumers are pessimistic about the possibility
of an upturn in the nation's economy and expect
a tough battle against inflation, according to a
study recently published by the University's Sur-
vey Research Center (SRC).
The resulting spending slowdown will eventual-
ly cause the recession Ford is seeking with his
belt-tightening economic policy, but increased
consumer pessimism and tight money may cause
a recession more severe than anticipated, the
report claims.
SOME 57 PER CENT of the 1,438 persons sur-
veyed said they expect economic "bad times" in
the next 12 months, while 54 per cent expect the
bad times to last at least five years.
SRC interviewers found some indication of an
"inflation mentality," where expectations of fu-
ture price rises cause consumers to spend more

*essimistic

about

Researchers question consumers

before prices go up. But survey Director Jay
Schmiedeskamp claims this "buy in-advance psy-
chology" is offset by consumers not wishing "to
spend now or later."
University economics Prof. Paul McCracken
says the resulting recession will put the buyer
in a position. to determine prices through bar-
gaining power within the market.
"OBVIOUSLY PRICES are not going to come
into line until enough resistance can be made to
make them stick," he claims. Unlike Ford and
McCracken Schmiedeskamp expects the impend-
ing recession to have severe repercussions.
Although he predicts decreased spending would
result in the recession sought by Ford, Schmiede-

skamp expects it will hit much more strongly
than anticipated.
Schmiedeskamp says the "American people
have gotten the message," to decrease spending
both from Ford's economic advisors and from
their obviously decreased buying power.
HE CLAIMS government pleas for lower con-
sumer spending will magnify the already pro-
nounced non-spending trend, resulting in a re-
cessionary cyle.
Decreased demand would lead to lower produc-
tion, he explains. This drop would then lead to
increasing unemployment resulting in further
belt tightening and, ultimately compounding the
recession.

infa ion
Tom Weisskopf, also a professor of economics,
strongly advocates a reversal in the recessionary
trend. He claims the recession is "not necessary"
for healing the nation's economic wounds, and
adds, "We shouldn't have to wait until lots more
people have suffered before we do something
about it." Although he says there are many ways
to cure a recession, he suggests some govern-
ment controls are necessary to halt the trend.
The SRC study, begun in 1946, was designed
to find out what interests people at a given time.
Schmiedeskamp said the consumer survey is use-
ful in predicting what will happen to the economy
in the near future, as well as figuring out the
impact of policy change.
ALTHOUGH HE SAYS the stidv was financed
by "American business and industry," Schmiede-
See RESEARCHERS, Page 8

Round

two

Student Organizations Board Member Elliot Chi-
kofsky filed charges with the University Judicial
System referee yesterday asking that the Sched-
uling Office's new procedures for allocating cam-
pus auditorium space be rescinded. Chikofsky
charged that Vice President Henry Johnson, Vice
President Wilbur Pierpont, Scheduling Office Chief
A.A. Stuart, and Special Programs Director Mau-
rice Rinkel "have conspired to violate both the
implicit and explicit intent of the Board of Re-
gents by unfairly demanding financial reports
which exceed those reasonably necessary."
HRP charges dismissed
An Ingham County Circuit Judge yesterday re-
moved Gov. William Milliken and his chief fund-
raiser as defendants in a suit filed by Human
Rights Party gubernatorial candidate Zolton Fer-
ency charging illegal and unethical fundraising
practices. Judge Thomas Brown ruled that the
plaintiffs failed to allege any specific wrongdoings
on the parts of the defendants. However, Brown
said he will be hearing testimony against State In-
surance Commissioner Daniel Demlow, named as a
co-defendant in the suit, for allegedly soliciting con-
tributions on state property.
Concert postponed
The illness of pianist Andre Watts has forced
the University Musical Society to postpone the re-
cital scheduled for this coming Wednesday, Octo-
ber 16. The Society has tentatively rescheduled the
event for Wednesday, November 6. Tickets for the
original date will, of course, be honored at the new
date. Place remains the same - Hill Auditorium.
Needless to say, the ushers are out of a job for
that night but are asked to show up on the re-
scheduled date.
0
Happenings .. .
... are widespread today. There will be an in-
troductory lecture on Transcendental Meditation in
Rm. D on the third floor of the League at 8 p.m.
.. .a group of local lesbians are getting together
for an informal group discussion at 8 p.m. at
225 E. Liberty No. 203 . . . Morris Janowitz of the
University of Chicago will be speaking on the so-
cial control and human services in the Rackham
Amphitheatre at 7 pm. . ...the Concerned Cleri-
cals for Action will be holding their regular Tues-
day night meeting at 202 E. Washington in Rm. 312.
For more information call 994-0808 . . . Peggy
Goldman. Communist Party candidate for the
State Board of Education is giving a talk on "Edu-
cation: A Right, Not a Privilege" at 4 p.m. in the
Schorling Aud. in the School of Education.
Mao suffers setback
Chinese Communist party leader Mao Tse-ung
suffered a severe stroke at the end of September
which has virtually ended his active role in the
country's political life, the London Daily Telegraph
said yesterday. "News of the' sudden worsening of
the health of Mao, 81, this year and the bitter bat-
tles for succession which are now under way was
brought out by Western businessmen recently in
Peking who had unique access to top Chinese
leaders," the news report said. Main contestants in
the power struggles to succeed Mao are Premier
Chou En-lai and Mao's wife, Chiang Ching.
Red lights fade
Military rule in Ethiopia has pulled the plugs on
Addis Ababa's red light light district as the more
than 110,000 prostitutes are forced to conform to
the recently-imposed 11 p.m. to 6 a.m. curfew. The
capital's nightlife, which had a notorious reputation
throughout east Africa just ain't what it used to be.
Nightclub customers hastily down their drinks be-
fore curfew time and there is an increasingly fierce
competition among the prostitutes for what trade
they can pick up before the stroke of 11.
On the inside . .
... David Warren reviews George Carlin's week-
end performance on the arts page . . . the editorial
page features a behind-the-scenes look at the UGLI
reserves through the eyes of staff writer Steve
Ross . . . and on the sports page read about the
latest decision by the Western Collegiate Hockey
Association (which includes the Michigan team)
not to comply with an NCAA ruling .. .
a ~

COVER-UP EVENTS REVIEWED

waterate

prosecution

opens

B en-Veniste quotes
tapes in lengthy talk

By AP and Reuter
WASHINGTON - Assis-
tant Special Prosecutor
Richard Ben-Veniste laid
out his case against the five
Watergate cover-up defen-
dants yesterday, declaring
he will prove an illegal con-
spiracy among "the most
powerful men in the gov-
ernment of the United
States."
He said the plan to cover
up the break-in at Demo-
cratic National Committee
headquarters more than
two years ago "involved the
participation of even the
President himself."
DURING his lengthy, low-
keyed presentation, Ben-Veniste
told the jury of meeting after
meeting where the President
discussed in detail ways to con-
tinue the faltering plan to con-
ceal White House involvement
in the scandal.
The 31-year-old dark-haired
prosecutor, speaking from a
lectern only a few feet from the
jury box, said former President
Richard Nixon was willing to
sacrifice a close aide to save
himself and closer associates
when the cover-up was un-
raveling.
Quoting from an April 19,
1973, White House tape, Ben-
Veniste said Nixon believed
that if former White House
Counsel John Dean were turned
over to Watergate prosecutors,
they might not try and make a
case against presidential aides
H.R. "Bob" Haldeman and
John Ehrlichman or Nixon him-
self.
ON THE tape, Nixon said
Haldeman and Ehrlichman
should "give the investigators
an hors d'oeuvre (Dean), and
maybe they won't come back
for the main course," the prose-
cutor said.
Ben-Veniste said that in mid-
April 1973, Nixon, Haldeman and
Ehrlichman "considered a stra-
tegy of pushing Dean outside the
circle of wagons around the
White House."
On April 19, Dean issued a
statement saying he would not
See PROSECUTION, Page 8

Haldeman

AP Photo
ROBERT MARDIAN, left, and his attorneys David Bress, center, and Thomas Green arrive at U. S. District Court yesterday for
the Watergate cover-up trial. Bress has said he will move for dismissal of the single charge against Mardian. A review of cover-up
events marked the opening of prosecution arguments.
PAY RAISE SOUGHT:

FUac ulity
By ROB MEACHUM rected
The Committee on the Eco- budget
nomic Status of the Faculty million
(CESF) has called for an 18 per impler
cent compensation increase for change
1975-76. The proposed increase, may b
if approvied by the Regents,
will total over $8 million. "WE
CESF's request comes after not on]
Governor William Milliken di- our e

gr-oup

asks

the University to cut its
by four per cent, or $4
. If both measures are
mented, drastic program
es or a tuition increase
e necessary.

ARE
ly by the
eminent

CONCERNED
loss of some of
senior faculty

c* 0
ity Council defeats
aniEIMmotions

By DAVID WHITING
Mavor James Stephenson
lashed out last night at two
resolutions calling for City
Council opposition to the En-
ironmental Research Institute
f Michigan's (ERIM) planned
.one to Ann Arbor.
Both resolutions were defeated;
along partisan lines with Repub-
lican members voting in favor
of ERIM. Stephenson attacked
the proposals as "absurd" and
"irresponsible."
C 0UNCIIW0 M A N
Kathy Kozachenko (H u m a n
Rights Party-Second Ward) in-
trodu ced a resolution focusing
on ERTM's defense-related re-
search while Democrats moved

Presently ERIM pays no pro-
perty tax on their Universty-
owned site at Willow Run Air-
port and has Internal Revenue
Service tax-exempt status as
well.
IF THE FAVORED Bendix
site on Plymouth Rd. were tak-
en by ERIM, the city could
lose up to $158,000 in revenues.
The firm has offered 10 per cent
of its income in lieu of taxes-
about $40,000.
Speaking for the Democrats'
resolution, Councilman Jamie
Kenworthy (D-Fourth Ward) re-
ferred to 'lousy city services"
saying, "It is irresponsible to
approve a move taking proper-
tv off the tax roles." He added
tha ron l"cannot ivewith

members, but also by the in-
creasing number of universities
able to compete with us for the
services of outstanding junior
personnel," the report which
will be discussed at Thursday's
Regent meeting states.
The proposed increase
includes three major parts:
O Restoration - a four per
cent increase to restore "lost
ground". This increase will to-
tal nearly $2 million;
* Maintenance - a $2.7 mil-
lion increase designed to "keep
pace" with other institutions;
and
* Improvement - designed
to attract and keep quality fac-
ulty, this increase will mean
$3.5 million.
CESF CHAIRMAN S a u
Hymans, says it is "difficult to
maintain the quality of faculty
if other universities can out-
draw- us."
The University's faculty sala-
ries ranked thirty-fourth in the
nation this year compared to
seventeenth ten years ago, ac-
cording to Hymans.
Carl Cohen, chairman of the
Senate Advisory Committee on
University Affairs (SACUA),
says that the demands are rea-
sonable and that "nothing could
be more important to the well-
being of the University."
"COMPENSATION is one way
,f k sn rn a-nd facurlty " "ih

OWNER UPSET
Local Gremlin runs amok

hi@ke
"THEY CAN'T possibly meet
the demands without a tuition
increase or program cutbacks,"
said Morris. "I don't think the
University has the resources
for such an increase.
Morris sees the recent trend
to unionization as a "real prob-
lem" in getting the increase.
With a "fantastic portion" of the
University's employes already
unionized, faculty members,
who have no bargaining agent,
will get low priority for salary
hikes, says Morris.
Although he said he dreads
the thought, Morris predicted
"unionization by faculty mem-
bers is a possibility."

SGC
aims for.
honest
election'
By TIM SCHICK
As Student Government Coun-
cil elections g e t underway
today,, election officials are op-
timistic for chances of conduct-
ing a fraud-free election.
After several years of alleg-
edly fraudulent elections, Elec-
tions Director Allen Bercovitz
has attempted this year to ar-
range tight security in order to
ensure fair balloting.
THE POLL workers, who are
all University students, are the
only people who will be with
both the ballots and the ballot
boxes for long periods of time.
As of last night, parts of the
ballots had not been printed,
making it impossible to mark
them in advance for placement
in a ballot box at a later time.
All the ballots are numbered to
prevent theft.
See SGC, Page 2

By STEPHEN SELBST
Arfhur Keene's new Gremlin has gremlins.
And the impish little sprites won't leave him
or his car alone.
In the month since he bought the car, the
svelte little compact has proven less a boon
than a boondoggle. The Gremlin pulls off to
the left when the brakes are applied. The
dealer drove it into an accident, and he's
asking Keene to pay for the damage. And if
that isn't bad enough, American Motors Corp.
(AMC) says he's stuck with his gremlin-filled
Gremlhn.

misfortune.
As soon as the Keenes began to drive their
new purchase, they discovered that the car
pulled sharply to the left when the brakes
were applied.
WHEN KEENE took the car back to Campus
American for its first service check a little
more than a week later, he told the service
people of the problem. But the mechanics
examined the auto and could not discover the
origin of the fault.
The dealershin counseled Keene to drive the

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