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Eighty-Four Years of Editorial Freedom
Vol. LXXXV, No. 77
Ann Arbor, Michigan-Saturday, December 7, 1974
Ten Cents
Eight Pages
a
HIGHEST IN 13 YEARS
1
IFYO sE 5F HAPPB CALL z"AIyY
Kambly responds
Dr. Arnold Kambly, the owner and operator of
a local psychiatric treatment facility, yesterday
denied charges that he has obtained about $16,000
from the federal government under false pre-
tenses. Administrator of the controversial Univer-
sity Center, Kambly was arraigned Thursday on
16 counts of filing billing statements with the gov-
ernment for services never given patients. Kambly
said that as a standard procedure he and many
other doctors bill patients for missed appointments,
and this accounts for money in question. Also,
Kambly condemned State Attorney General Frank
Kelley for acting "unethically" in pressing the
charges without consulting him first.
0
Stagflation solution?
A pair of University professors have drawn up
an eight-point attack plan which they say could be
the answer to America's inflation recession pre-
dicament. The plan includes greater federal spend-
ing on vital programs, revival of a WPA-style labor
pool for unemployed persons, tax credits for firms
taking on new employes, and abandonment of plans
for both balanced budgets and tax increases. Econ-
omist William Haber, who advises the University's
executive officers on money matters, and Dr.
Malcolm Cohen, research co-director of the Labor
and Industrial Relations Institute, contend that
quick, massive federal action on the employment
front is the only way to keep the recession from
turning into a full-force depression. "The waste
of human resources," the professors state, "is a
tragedy which we must overcome."
0
Happenigs...
. .It's a busy day. The basketball team takes
on Tennessee in Crisler Arena at 2 p.m. . . . the
Ski Team sponsors a "ski swap" equipment sale
from 9 a.m. to 8 p.m. in the Ice Coliseum at 5th
and Hill . . . MUSKET presents the new musical
comedy Jericho at 8 p.m. in Mendelssohn .. . As-
sistant Music School Dean John Smith's new pop
band, Amazing Blue, will play Christmas music out
at Briarwood from 1 to 3 p.m., if you like melodic
shopping . . . the Professional Theatre Program
presents The Sty of the Blind Pig in the Frieze
Bldg.'s Arena Theatre at 8 p.m. . . . Sarah Megee
Martins and Jane Tavalin Schwartz present their
masters dance theses performance at 8:30 p.m. in
the Education School's Schloring Aud. . . . and at
the same time in Hill, the Musical Society rings in
Christmas with Handel's Messiah.
0
Montana bull
The shah of Iran's brother wants to come to
Montana to stalk down a bull moose for the Royal
Museum of Iran. He made his request to Jack At-
cheson & Sons, Inc., a firm specializing in pulling
off worldwide hunts. The firm was eager to start
the chase, noting it might be good for international
relations. The Montana Fish and Game Commis-
sion has turned to the State Department for guid-
ance. The commission chairman feels we might
get an oil agreement out of Prince Abdorreza's
penchant for a bull moose.
0
Bugging the mail
Workers in the main Salt Lake City post office
woke up with a jolt yesterday when about 100
crickets hopped out of the morning mail. The cur-
ious crickets were members of a group of 1,000
insects doomed to become food for birds and rep-
tiles at Salt Lake City's Hogle Zoo. The rebel cric-
kets engineered their escape by eating through the
plastic foam containers in which they were ship-
ped from Louisiana.
0
French disconnection
Eddie Egan, the drug-busting New York police
detective whose exploits provided the material for
the novel and movie "The French Connection" got
shot down in his new career as a restaurant owner.
Egan says financial troubles have forced him to
close his 14-month-old Florida establishment, The
Lauderdale Connection. Egan returned to the trade
that made him famous, explaining that he had to
take a job with a local detective agency to make
ends meet.
0
Ont the inside. ..
Turn to the back page for our weekly Hap-
penings calendar . . . on the Editorial Page, PIR-
GIM reports on the dubious safety of expensive
toys . . . the Arts Page features a trio of reviews,
including MUSKET'S performance of Jericho .. -
and on the Sports Page, Fred Upton writes of the
hockey team's trip to Notre Dame.
on the outside ...
Will there be snow? As another major storm
moves toward us from the Gulf, warm air will
.nIP..i a ai-nhn 1n thsmornina hrm
Uemployme t
Econ.
building
catches
fire
By JEFF DAY
The economy is going up in
smoke.
Yesterday, in keeping with the
times, the Economics Building
caught fire, sending several of
the nation's finest economists
into the cold, fearing for their
valuable research.
ALTHOUGH the fire, which
began at 3 p.m., drew scores
of onlookers and only a slightly
smaller number of firemen fire
officials described the damage
to the building as light, and it
appeared that no research had
been lost in the blaze.
The fire, which damaged
three offices in the century-old
building, was ignited while a
workman was installing a new
heating system as part of a
building renovation project.
The workman inadvertently
lit the insulation on an older
pipe while he was installing a
new radiator pipe in the east
end of the building.
UNAWARE of the smoldering
pipe, the workman left the room
to get spare parts. He returned
to see flames shooting up the
wall.
Describing his efforts to ex-
tinguish the fire he said, "Back
there, it was impossible. Thirty
seconds was all you could take."
See ECON, Page 2
eaches 6.5o
Fed. board lowers
I)andiscount rate
WASHINGTON (M - Nearly six million American job
seekers were out of work last month as the unemploy-
ment rate jumped to 6.5 per cent, its highest level in 13
years, the government reported yesterday.
(Michigan's unemployment figures for November
jumped 1.5 per cent to 8.8 per cent - dramatically higher
than the national figure - and the Michigan Employ-
ment Security Commission predicted the statistics next
month would nudge or touch 10 per cent.)
THE NOVEMBER increase in the jobless rate, from October's
6 per cent level, prompted the White House to acknowledge the
economy is deteriorating more rapidly than anticipated.
Meanwhile, a pair of government moves made it possible for
large businesses to borrow more easily and savers to collect higher
interest on their money.
In a move to stimulate the
Board approved a cut in the
discount rate in the New York
and Philadelphia areas to 7.75
per cent. This means banks pay
less when they borrow money
and thus can charge lower in-
terest rates to customers.
AND A pair of federal agen-
cies approved higher interest
rates on savings in amounts of
$1.000 held over the long term.
With Christmas fast approach-
ing more Americans now are
out of work than any other time
since 1940, when the nation
was coming out of the Great De-
pression and gearing up for
World War II. There were
about 8.1 million unemployed
then. This made up 14.6 per cent
of that era's smaller labor
force.
The Labor Department report-
ed that 462,000 more workers
joined the unemployment rolls
last month, bringing the total
without jobs to a seasonally ad-
justed 5,975,000. That was 1.9
million more than in Novem-
ber 1973. Nearly half of that 12-
month increase was among
workers who lost their last jobs.
THOUSANDS more job lay-
offs have been reported in the
automobile and other key indus-
tries since the government col-
lected the November employ-
ment figures and these are ex-
pected to push the December
unemployment rate to nearly
seven per cent.
White House Press Secretary
Ron Nessen said the 6.5 per
cent unemployment rate is "a
source of great concern" to
President Ford. Nessen said the
entire economic situation is
under review and hinted the ad-
See UNEMPLOYMENT, Page 2
Doily Photo by PAULINE LUBENS
CITY FIREMEN work at clearing away the rubble of the fire that damaged three offices in the
Economics Building yesterday. No one was hurt in the fire, which started when a workman's
torch ignited insulation along a heating pipe.
economy, the Federal Reserve
State
J obless 't
rate hlt
DETROIT (UPI) - One of
every 17 persons without jobs in
the United States lives in Mich-
igan and state employment of-
ficials expect the figure to go
up again next month.
Statistics released yesterday
by the Michigan Employment
Security Commission showed un-
employment in the state in No-
vember was 8.8 per cent and
in the Detroit area 9.1 per cent.
THE FIGURES are the high-
est for any November since
1959, a recession year that hit
hardest at the auto industry-as
does the current recession.
The unemployment figure for
the entire country in November
was 6.5 per cent-or 6 million
persons without work.
The. number of jobless in
Michiganuwas 342,000, or one in
17 persons unemployed nation-
wide.
MARTIN TAYLOR, the De-
troit director of the Security
Commission, said the December
report will be higher because
November figures did not in-
clude the huge pre-Than.Ksgiv-
See STATE, Page 2
"TORPEDOES" GO VERNMENT
CASE:
Hunt's attorney
denies
ater gate
WASHINGTON (UPI)-Howard tion and defense objections
Hunt's Watergate lawyer testi- as far as he knew the $1
fied yesterday he had no rea- he received as Hunt's la
son to believe the massive sums was for legal fees and no
paid the Watergate burglars more.
were intended as hush money, "I HAD no information t
provoking prosecution com- lieve that any money pa
plaints he was trying to "tor- Mr. Hunt was for his si
pedo" its case. . . . ," Bittman shouted a
William Bittman, called as a point, pounding his fist o
court witness at the Watergate witness box.
cover-up trial over both prosecu- "Mr. Hunt never indicat
ExSG Pres. Gill
drops out of sight
By TIM SCHICK,
DAVID BLOMQUIST,
and DAVID BURHENN
Controversial former Student
Government C o u n c iil (SGC)
President Lee Gill has apparent-
ly quit his latest job and drop-
ped out of sight allegedly leav-
ing a trail of bad checks and
unpaid bills through the cityaof
Chicago.
Gill, who has been accused
of misusing $16,000 in SGC
funds d u r i n g his six-month
tenure as Council president, was >:
last seen leaving a Chicago
apartment five weeks ago in aG
car with M i c h i g a n license
plates hauling a rented trailer.
Left behind were angry apart-
ment and hotel managers withL
unsettled accounts for room ls.
SGC OFFICIALS have been
attempting unsuccessfully to
serve Gill with two civil suits
on the fund abuse charge for t1
several months. SGC assistant
counsel Louis Lessem, howcmTer, By JO P
refused comment last night on Last of
Gill's apparent disappearance. American medicalc
SGC voted September 12 to to be the best in the5
start c r i m i n a l proceedi-igs to those who can affo
against Gill, and reaffirmed
that decision during a Council Hncome groups can onl
meeting Thursday night. However, for local re
Maurice Preston, manager of cal attention, but whoc
-. . , . .' - -. , ;, - t. P- h , r
Cover-up
said me in any manner whatsoever
56,000 that anything he was doing was
awyer a quid pro quo, that is, silence
)thing in exchange for money. In fact,
everything was to the con-
to be- trary."
id to At least three previous wit-
ilence nesses said the cash payments
t one to the burglars and their law-
n the yer, $429,500 in all, was to keep
them quiet about high-level in-
ed to volvement in the Watergate
break-in plot.
BITTMAN also said he had
not read Hunt's Nov. 14, 1972,
memo about White House "com-
mitments" to its Watergate
burglars until six months after
it was written. The memo
charged the Nixon administra-
tion had committed itself to
provide pardons and hush
money for the Watergate bug-
gin' team and had not done so.
Bittman represented Hunt, one
of the masterminds of the
Watergate bugging, for 14
months beginning in July of
1972. He was named an un-
indicted co-conspirator in the
cover-up and is now believed to
be under further criminal in-
vestigation.
Judge John Sirica called Bitt-
man as a court witness in order
to "get the facts out" after
prosecution and defense counsel
refused to vouch for his cred-
ibility and argued heatedly
role
against calling him. The prose-
cution protested again, with the
jury out of the room, after Bitt-
man had testified an hour.
"HE WENT out of his way on
the stand to torpedo the gov-
ernment's case," chief prosecu-
tor James Neal shouted. "I
won't allow that as long as I've
got life in my body."
Sirica waved the protests
aside.
"Just because we judges sit
up here in black robes, we're
not nincompoops," he said.
"THIS convinces me I was
right when I changed my mind
and called him as a court wit-
ness. The jury is entitled to
know the truth as to the issues
and one of the issues is whether
this money was hush money.
This goes to the heart of the
case."
Earlier Friday, Charles Col-
son testified that H. R. "Bob"
Haldeman told him just as the
Watergate cover-up was begin-
ning to collapse that President
Richard Nixon might appear
to be part of the cover-up.
"Bob said he was concerned
that the President not appear to
be covering up," Colson tes-
tified. "I told Bob that I didn't
think the President had done
so."
The economy
at a glance
UNEMPLOYMENT: Nearly six million American job
seekers were out of work last month as the unemployment
rate jumped to 6.5 per cent, its highest level in 13 years.
With Christmas approaching, more Americans now are
out of work than any other time since 1940, when the
nation was coming out of the Great Depression and gear-
ing up for World War II. There were about 8.1 million
unemployed then. This made up 14.6 per cent of that
era's smaller labor force.
FORD-ECONOMY: White House Press Secretary Ron
Nessen hinted that President Ford will seek new anti-
recession legislation soon and that he will move toward
a mandatory energy-conservation program early next
year. Nessen said the 6.5 per cent unemployment rate
was "a source of great concern" to Ford. Nessen
acknowledged that the jobless rate had increased faster
than expected since Ford unveiled his economic program
on Oct. 8.
LAYOFFS: Two automakers, several television and
consumer goods manufacturers were among those an-
nouncing job furloughs and layoffs yesterday. Ford Motor
Co. announced 1,125 indefinite layoffs as a result of a
shutdown of three plants next week. General Motors said
it is laying off 1,036 workers.
OIL: The Middle East Economic Survey reported Saudi
Arabia has reached agreement with four American oil
companies to buy out all their shares in Aramco and
become sole owner of the world's largest oil producing
company. The takeover would mark a decisive shift in the
balance of petropower, climaxing a transition of several
years during which the giant U.S. and European oil com-
panies evolved from bosses to skilled servants of the oil
states.
FOREIGN ECONOMY: West Germany reported its
highest unemployment in 15 years, two ailing European
auto giants-British Leyland and Citroen-required emer-
gency aid and Britain prepared tough energy-saving steps.
In Germany. relatively one of the more prosperous coun-
gal clinics offer
cost health care
MARCOTTY
three parts
care, considered by some
world, is readily available
ird it. But frequently, low
y hope they don't get sick.
esidents who require medi-
can't pay the doctor's fees,
rt of meroencv ce.
time the doctor spends with a patient, lab test
and so forth."
The average rate is about $8 per visit, $7 for
students.
"OLD PEOPLE who are really up against the
wall are charged less," Ms. Pierce said.
When Pierce first opened the clinic, he was the
onlv nhvsician nracticing. But now the Center