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December 12, 1974 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1974-12-12

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AUDITOR
EXPOSES 'U'
See Editorial Page

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SNOWIER
High-33
Low-18
See Today for details

Vol. LXXXV, No. 81

Eighty-Four Years of Editorial Freedom
Ann Arbor, Michigan-Thursday, December 12, 1974

Ten Cents

Twelve Pages

r- ------ -

Ford

t IFIDoU SE IF 16 APPN CL'DX my
ROTC opposed
The LSA Student Government (LSA-SG) last night
unanimously passed a motion favoring continued
denial of credit for ROTC courses and condemning
Student Government Council for "meddling in
LSA business." The motion reaffirms the stand
taken by LSA-SG in 1969 when literary college
credit for ROTC was removed. The LSA curricu-
lum committee is 'presently considering renewal
of credit for ROTC, and last week SGC voted to
support the switch. The LSA-SG vote formally re-
quires the three voting student members on the
curriculum committee to oppose credit for the of-
ficers' training program.
Hopwood winners
The winners of the second annual Freshman Com-
position Hopwood Contest were announced yester-
day, with Nalini Samuel taking the top prize of
$100. Duane Gall and Anne Kwok each took home
$75 for second place. Seven prizes of $50 each
went to Richard Brooks, Susan DeMaria, Thomas
Danko, Barbara Goldoftas, Teresa Miller, Jeffrey
Weinfield and Richard Winters.
Minimal fraud
If you're in the market for a halfway honest new
car salesperson, a recent Public Interest Research
Group in Michigan (PIRGIM) study suggests taking
your chances with a local dealer. The public group
just completed a statewide comparison of dealer
mileage claims with official Environmental Pro-
tection Agency (EPA) .figures. Of the local new
car peddlers interviewed, only one, at Devon
Lincoln-Mercury, slightly stretched the gas mileage
truth to PIRGIM surveyors posing as customers.
Across the state, PIRGIM found 40 per cent of its
survey sample exaggerating highway driving mile-
age and 53 per cent overstating their wares' gas
economy in city traffic-a 47 per cent average.
PIRGIM will present its survey results to the
Federal Trade Commission as part of a drive to
require EPA milage figures on all new car
stickers.
"
Farewell
Despite their admirable disregard for the com-
monplace requirements of academic success, Daily
reporters, like the rest of the student body, must
spend the next few days on a desperate attempt
to make up for things not done in the past four
months. Today is our last day of publication this
term, so if your Daily doesn't arrive for three
weeks, it's no accident. Seasons greetings and we'll
see you again January 9.
e
Perry the mover
Our own State Rep. Perry Bullard (D-Ann Ar-
bor) has spent more ofPthe taxpayers' money on
travel than any other Michigan legislator since the
November 5 election. Included in Bullard's $665 tab
is a sojourn in sunny Las Vegas to study radio-
active material management. During the past
month, he has also trekked to New Orleans and
Washington D.C. Bullard will do a return stint in
the nation's capital this weekend to attend a con-
ference on privacy.
Happenings .. .
... .this first day after classes are few and far
between. The League Cafeteria features Mexican
food tonight while those of a poetic persuasion can
hear Robert Hayden and Kerry Thomas read thei'v
verse at the Guild House at 7:30 p.m. . . . the
Welfare Rights Organization is opening a new
office at 213 S. Main and they can use some help
and spare furniture.
"
On the inside .. .
... the Editorial Page presents a year-end photo
essay . . . the Arts Page features a review of
"H.M.S. Pinafore" by Ken Fink . . . and the
Sports Page contains John Kahler's coverage of
the Southern Illinois basketball game.
On the outside.. ..
A good day to stay inside. With a storm passing

to the south of us today, snow will play the leading
role, accompanied by cloudiness and cold tempera-
tures. Today's snow will taper to flurries by tonight
and it will turn even colder. There will be some
accumulation of the snow. Highs today will be 28
to 33, lows tonight will be 18 to 23. Chances are
90 per cent for some accumulation today but
chances will drop to 40 per cent tonight.

rejects

drastic

measures
Says fast economy
cures never worK
By AP and Reuter
WASHINGTON - President Ford said last night the
United States is going through a recession, but he re-
jected calls for drastic new measures to stimulate the
economy.
He said he was firmly opposed to "quick fixes" be-
cause they never worked. The country is not facing an
economic crisis, he said, even though it is afflicted by
inflation and slump.
SPEAKING TO the Business Council, a group of top business
executives, Ford predicted that the current 12 per cent level of
inflation would move steadily down.

Daily Photo by STEVE KAGAN
A FEW OF MORE than 500 unemployed people who visited th e local Michigan Employment Security Commission office yes-
terday stand in line seeking benefit payments or new job pros pects. For the city's poor and jobless, the Christmas season
offers little hope of any kind of celebration, especially becaus e of the worsening economic situation.
The two sides of Christmas

Business as usual
By MARY DEMPSEY
Apparently undaunted by high prices and the economic
crisis, the usual complement of Christmas shoppers is out in full
force-except, that is, for students.
With only 12 shopping days left until Christmas, city stores
are beginning to fill with promotional sales, bargain hunters,
and distraught mothers, but relatively few young people.
INFLATION seems to be behind the decline in student
purchases. "I'm much more conscious of how much money
I don't have to spend," said one pharmacy student. "I de-
cided to make more things myself, because nobody has any
money."
Other shoppers say the money crunch has hit them, too.
See XMAS, Page 8

No cheer for poor
By ANN MARIE LIPINSKI
There will be no Christmas for Betty Carter this year.
Betty is divorced and recovering from an appendix opera-
tion. She has asked Ann Arbor's Salvation Army post for some
financial aid, but she's not sure if the money will cover her
needs.
"UNLESS SOME help comes from somewhere, unless some-
one gives us something, Christmas will just be another day for
me and my three kids. We're up to our neck in problems," she
says.
To help make ends meet, Betty will work a Christmas day
shift on her job as custodian for the University.
Unfortunately, Betty is not unique. "On the contrary," says
See CHEERLESS, Page 8

"But if there are any among
degree turn from inflation fight-
ing to . . . pump priming, they
will be disappointed," he de-
clared.
The President said he was
studying new and alternative
measures to augment the eco-
nomic package he gave Con-
gress in October and he would
have new proposals when the
new Congress meets in mid-
January, if not sooner.
BUT HE said he would not go
in for short-term panaceas. He
argued that instincts must be
overruled by intelligence and
politics must yield to principles
if the country is to make rea-
sonable economic progress that
can be sustained.
"Insofar as I can prevent it,
the fundamental rules of the
economic game arenot going
to be changed every other
month or every other year ei-
ther in the short or long haul,"
he said.
The President's current poli-
cies are aimed chiefly at slow-
ing down inflation. His anti-re-
cession proposals, still being
studied by Congress, include
public service jobs, improved
unemployment compensation,
and also a five per cent sur-
tax, which has little chance of
Congressional a p p r o v a 1,
a White House spokesperson
said yesterday.
REJECTING charges that he
lacked leadership and decisive-
oess, the President said he
was concentrating on the total
picture and was deeply con-
cerned about all three domestic
devils - inflation, recession,
including mounting unemploy-
ment, and sky-rocketing fuel
prices.
Ford said that in his 25 years
of public service the United
States had gone through at least
five recessions and had recov-
ered from all.
"We will recover from this
one also," he declared. ". . . I
cannot and will not promise you
a sudden change for the bet-
ter ...
"ALL OF US must act to re-
new and invigorate, our econo-.
my and everybody's faith in it.
"Hopefully, we will do most-
ly right things and only a few
wrong things, because just do-
ing something - however it
might perk up the political
opinion polls - could be the
worst course of all."
He specifically rejected wage
and price controls, gasoline ra-
tioning and other compulsory
programs that, he said, treated
the symptoms but retarded the
cure.

you who want me to take a 180
'U, study:
" "
Faith in
economy
plunging
By DAVID BURHENN
A founder of the University's
survey of national consumer at-
tittides says President Ford's
current economic policies are
"all wrong" and may be con-
tributing to the most serious
drop in consumer confidence
since 1950.
George Katona, who began
the Survey of Consumer Atti-
tudes (SCA) 24 years ago, says
that the latest national sample
of American economic optimism
reveals that the current reces-
sion is being fueled by a con-
tinuing deterioration in the con-
sumer' s "willingness to buy."
THE FULL results of SCA's
latest survey will be announced
at the University's Conference
on the Economic Outlook to-
morrow.
Katona says the drop in con-
fidence, the longest and deepest
ever recorded by the SCA, is
"possibly due to the fact that
the government fails to recog-
nize it."
"In the past, people 'nought
if there were calamities the gov-
ernment would intervene and
act," Katona says. "Now rhey
have doubts about its ability
and willingness to act. The con-
sumers are dejected, are pes-
simistic, are concerned 'about
the future, and are not willing
to spend any more money."
KATONA believes that the
Ford administration s h o u 1 d
"fight recession and not infla-
tion." He advocates lowered
interest rates, an easing of tax
burdens imposed on poor and
retired persons, and govern-
ment programs to boost em-
ployment.
The consumer confidence sur-
verey is conducted every three
months among 1,400 selected
subjects across the country.

REPORT CITES NO-BID CONTRACTS:

'U,

gr

ants called improper

By CHERYL PILATE
The University awarded $4.6
million in construction contracts
between 1968 and 1972 without
competitive bidding, according
to a report issued by the state
auditor general's office.
The report, which was re-
leased Tuesday, also revealed
that the University awarded an-
other $4.8 million in remodeling
contracts to local customers-
while failing to advertise that
the jobs were available for bid-
ding.
ALTHOUGH granting con-
tracts on a non-competitive
basis is not illegal, state audit
manager Robert Hovey yester-
day labeled it "improper.'
"Right now, the University
does not have a policy regfitd-
ing public advertising for al
public bids," said Hovey. "To
be more fiscally accountable,
they should obtain bids for all
contracts over $5-6,000."
However, the University , e-
hemently defended its right to
award contracts on a selective
basis. Wilbur Pierpont, vice
president and chief financial
officer, said that in "some
cases, non-competitive bidding
can be a much more effective

and much less costly method." to work stoppages.

ACCORDING to Pierpont, the
University awards many con-
tracts which involve working
around ongoing activities, such
as a remodeling of a classroom
building.
Officials hedge on tuition
h i k e question. See s t oar y,
Page 2.
In such situations, he con-
tended, it is much more effi-
cient to negotiate a contract
than accept the lowest possible
bid-since a negotiated deal can
specifically exempt the Univer-
sity from further payments due

"The auditor general !as cer-
tainly been farsighted not to
realize the different advanages
of different procedures, ' com-
mented Pierpont. "In a limited
number of cases and in certain
circumstances, this (non-compe-
titive contracting) is the best
technique."
THE STATE r e p o r t also
charged that the Uaiver.ity
awarded several remodeling
contracts w i t h o u t a signed
agreement-leaving administra-
tors with no legal recourse if
the work was not done properly.
Pierpont explained tnat be-
cause each contract is of a dif-
ferent size and covers varying

circumstances, the Uiversity
has no standard policy concern-
ing the contract awarding pro-
cedure.
Other major charges leveled
by the auditor's office include:
B the accumulation of $44
million in unused revenue and
endowments;
0 three construction projects
financed from state capital out-
lay appropriations during the
audit period exceeded the cost
authorized by the legislature by
$2.1 million, with the over-run
costs charged to the University
general fund; and
. in opposition to legislative
intent, use of $19.2 million of
University general operating
funds for construction and reno-
vation projects.

Students to vote in
newspaper dispute

State builds

City rebounds from

By GLEN ALLERHAND
Editors of Community High
School's student newspaper, the
Yenta, last night agreed to sub-
mit to a staff vote a school
board proposal to hold up publi-
cation of a controversial birth
control article until attorneys
determine if the item conflicts
with state law.
Yenta editors asked to meet
with school officials after they
learned of a state statute which
apparently prohibits the distri-
bution of birth control informa-
tion on public school property.
EDITOR-IN-CHIEF Peter Lar-
das seemed to favor the tenta-
tive agreement. "It was more
than I expected," Lardas said.
"I think we're getting quite a
lot of what we hoped for."

possible violations of F i r s t
Amendment rights that could
occur if the board attempted to
halt the printing and distribu-
tion of the birth control infor-
mation.
Citing the major court case
involving high school journal-
ism, Tinker v. Des Moines
School District, Lardas noted
that "students do not shed civil
rights by walking through the
school door."
"I think it would be a mistake
to suspend our rights as citi-
zens of our country," he added.
BUT TRUSTEE Peter Wright
claimed that publication of the
article would "put the board in
a corner by condoning iilegal
action."
Wrig-ht then nrannePa tlin

case against
Dr. Kambly
By GORDON ATCHESON
State prosecutors yesterday laid the foundation
of their case against Dr. Arnold Kambly, owner
and operator of the controversial University Cen-
ter, during a pre-trial hearing to examine charges
that the doctor obtained over $16,000 from the
federal government under false pretenses.
After nearly five hours of testimony from three
prosecution witnesses, 15th District Court Judge
Pieter Thomassen adjourned the proceedings
until next month.
KAMBLY, WHO runs a private psychiatric
facility for adolescent males, was arrested last
Thursday on 16 counts of defrauding the federal
government.
Thomassen will decide if Kambly should be
hn- -d irr fr r ig) in :- mn -h.ann -- .. t 0:Pi .ii4

1973

budget deficit

By GORDON ATCHESON
City Administrator Sylvester Murray yes-
terday disclosed that Ann Arbor has dra-
matically slashed its municipal deficit to
$440,000, but cautioned that the city is not
vet out of the financial woods.

a need for more income - are still in
effect.
The deficit reduction is part of a three-
year plan to eliminate the city's debt. Last
December, the state government forced the
city to adont the nroram arngina that fi,

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