BUDGET
CUTS.
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Vol. LXXXV, No. 101

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ORDINARY
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Eighty-Four Years of Editorial Freedom

Ann Arbor, Michigan-Friday, January 31, 1975

Ten Cents

Eight Pages



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TERMS CUTS INFLATIONARY

rI

Cosmic news
The University's resident astronomer, hazel
"Doc" Losh, says that the constellation Leo the
Lion will grace our skies during the month of
February. Doc says it can be found climbing over
the horizon a little north of east after sunset.
"Easily recognized, Leo has six stars forming a
sickle, or reversed question mark," Doc says.
The dot of the question mark is the bright star
Regulus. Doc notes that ancient astrologers re-
garded Regulus as having great influence, and she
quotes an old saying: "If the star of the great lion
is gloomy, the heart of the people will not re-
joice"
Tripping
Here's a good way to see Spain and get some
course credit this summer. There's a four-week
program being offered in conjunction with the
American Leadership Study Group which features
one full week at the Universities of London, Ma-
drid, and Barcelona. It's not all books, though; sev-
eral days are spent in the Spanish countryside,
including visits to Toledo, Malaga, and Granada.
For information call Robert Quiroz at 763-1342.
The only drawback is the cost: ,$1,040.
Dope note
Drug expert Joel Fort testified at a Drug En-
forcement Administration hearing yesterday that
marijuana has such a widespread medical poten-
tial it should be available for doctors to prescribe
for their patients. He said the drug's medical
va-e in treating glaucoma, ashthma, cancer, even
alcoholism and drug addiction "would certainly
justify its legal availability for research and pre-
scribing." Fort also noted that the drug has been
used medically since 5000 B.C.-which may per-
haps justify an anthropological description as the
"Stoned Age-"
Bull-headed
Ex-bulfighter El Cordobes says his bout with
police is worse than fighting in the arena. The
prosecution asked a seven-month jail term for
El Cordobes on charges of causing a riot last sum-
mer after he drove his limousine the wrong way
down a one-way street and refused a policeman's
order to turn around. "This case is the toughest
bullfight of my life," said the 38-year-old former
matador. He was chargedswith drunk driving,
assaulting a policeman, causing bodily harm,
blasphemy, and creating a public scandal.
0
Happenings ..
are slim today. If you're willing to go to
Ypsilanti, the Art Department of EMU is spon-
soring a poetry reading featuring Kerry Thomas
at the Sill Gallery on campus at noon . . . and if
politics interests you, attend a lecture on "Succes-
sion in the Soviet Union" by Brey Hodnett, a pro-
fessor of political science from York University
in Rm. 200 of Lane Hall at 4 p.m.. . . or hear Mary
Ellen Riordan speak on "Labor and Unionization
Struggle: 'Search for Economic Stability," at Aud.
4, MLB, also at 4 p.m. The Creative Arts Work-
shop is offering classes in many things. For in-
formation, call the Community Switchboard at
663-1111 before Monday.
0
Vatican drag
The Vatican lost about $56 million in the Italian
Sindona banking scandal last year - about ten
per cent of its liquid assets - acording to an inter-
view published in the Italian weekly magazine
Espresson yesterday. In the interview a financial
adviser to the papal state assesed Vatican losses
in the collapse of Italian financier Michele Sin-
dona's banking empire, which crumbled after mas-

sive losses on the foreign exchange market. Al-
though exact figure on the wealth of the Vatican
are kept secret, the adviser was quoted as saying:
"We can say the total is 350 billion lire, $560 mil-
lion, and reckon losses have reached 10 per cent.
Thishmakes 35 billion lire, $56 million. The Vati-
can had no comment on the Espresson interview.
On the inside ..
On the Editorial Page John Ellis writes on
pruning budgets . . . Cinema Weekend and Sarah
Polarek's review of Tartuffe highlight the Arts
Page . . . and the Sports Page features Clarke
Cogsdill's preview of the Maize and Blue's up-
coming wrestling match with No. 1 ranked Iowa.
On the outside ...
A typical day. We will be on the northernmost{
fringe of a storm system which may cause some
snow this morning. As the storm moves further
away, a weak fair weather system will control the

Burns
200 .
protest
o erto Cobb
By SARA RIMER
About 200 people, many of
them faculty members and Un
versity officials c i r c 1 e d Re
gents' Plaza for half an hour
yesterday to protest what they
called the University's "insult-
ing offer" of a two-year, no-
tenure contract to Jewel Cobb,
the black woman chosen by the
Regents for the literary college
(LSA) deanship.

opposes

Ford

tax

plan

Says actions should
be oIiy temporary
WASHINGTON (Reuter) - Attempts by President
Ford and Congress to push through permanent tax re-
ductions to stimulate the economy were firmly opposed
yesterday by the country's senior central banker.
Arthur Burns, who is the prestigious chairman of the
independent Federal Reserve Bqard which manages the
nation's money stock, said that a permanent tax reduc-
tion would fuel inflation.
HE TOLD members of the powerful tax-writing House of Rep-
resentatives Ways and Means Committee: "At this time I would
be opposed, and would hope Congress would feel likewise, to a

BULLETIN
Two high-level sources told
The Daily late last night that
Acting LSA Dean Billy Frye
will be named to the permanent
deanship position today.
Vice President for Academic
Affairs Frank Rhodes refused
comment but said an announce-
ment would be released early
today.
Frye said he had not heard
anything as of last night.
The sources affirmed that the
University would "have to pick"
zoology Prof. Frye who was the
administration's original choice
for the post.
While concerned representa-
tives from women's and minor-
ity groups picketed the Admin-
istration Building, Vice Presi-
dent for A c a d e m i c Affairs
Frank Rhodes met at noon with
five people from the Women's
Commission, the Minority Com-
mission, and the Affirmative
Action Program who sought an
explanation of the secretive,
controversy-ridden deanship se-
See COBB, Page 2

Daily Photo by STEVE KAGAN
A DEMONSTRATOR wields a placard protesting the treatment of Jewel Cobb, chosen by the
Board of Regents two weeks ago to become the new Literary College (LSA) dean. The pro-
testers, many of them University faculty memb ers and staff, circled Regents' Plaza in front of
the Administration Building for half an hour yes terday.

permanent tax reduction."
Both President Ford and Al
Ullman (D-Ore.), chairman of
the House Ways and Means
committee, have proposed tax
packages which include semi-
permanent or permanent indi-
vidual income tax reductions to
bolster consumer spending.
But Burns said he would pre-
fer the tax proposals of Ullman
to those of Ford - if the Con-
gressional leader's tax reduc-
tion plan was short-term.
ULLMAN HAS put forward a
package for a $6 billion rebate
of last year's income taxes
coupled with an $8 billion re-
duction in individual taxes for
1975 by increasing personal de-
ductions and thus reducing the
tax withheld from workers' pay
packets.
"Frankly, I would like it bet-
ter than the President's pro-
posal in that form," Burns told
the committee.
Urging Congress to cut gov-
ernment spending below the
$350 billion mark proposed by
Ford in the next financial year
beginning July 1, Burns said
reduced spending would help
the Federal Reserve Board in
managing the nation's money
supply so there was no drama-
tic upsurge in inflation again.
N E V E R T H E L E S S,
he said the board could live
with $10 billion of budget defi-
cits expected to result from fall-
ing government revenues and
rising outlays during this finan-
cial year and next.
"If these deficits prove tem-
porary, I think that industry
will still "be able to recover and
this country will still be able
to prosper, and that inflation
may still be brought under con-
trol," Burns continued.
Commenting on President
Ford's energy proposals,which
he acknowledged he had not
studied in detail, Burns said
the plan was so complex that
Congress could not "in consci-
ence, act quickly on it."
FORD HAS been urging Con-
gress to act speedily on his
energy plan or quickly come up
with a comprehensive and equit-
able programme of its own.
Burns, in reviewing the econ-
omy, reported: "A solid eco-
nomic recovery may well await
evidence of greater progress
in checking the relentless up-
ward march of prices."
In separate developments
yesterday:
See BURNS, Page 2

TOTAL CASH INCREASES, BUT...
Milliken requests 'U'fund cut'

Burns

SGC.
rescinds
ROTC
"
motion
By TIM SCHICK and
KATE SPELMAN
In a 10-5 decision last night,
Student Government Council
(SGC) voted to rescind its ear-
lier endorsement of c o u r s e
credit for the Reserve Officers
Training Corps (ROTC) pro-
gram.
SGC President Carl Sandberg
a 1 m o s t simultaneously an-
nounced that a default judgment
has been rendered against for-
mer SGC president Bill Jacobs
in a case involving nearly
$42,000 in allegedly misused
funds.
IN OTHER council action,
Prof. Carl Cohen voiced his ob-
jections to the Committee to
Study S t u d e n t Governance
(CSSG) report, declaring that
students and faculty should not
have equal representation in
academic affairs.
The vote rescinding support of
ROTC came after a January 5
motion to reconsider the ROTC
program. Upon the announce-
ment of the result of the vote,
cheering broke out among the
40 students gathered in the
meeting room.
See SGC, Page 2

By MARY HARRIS
Governor William Milliken yesterday asked the state legis-
lature to cut the University's budget proposal by about four per
cent-a move that would force the University to drastically limit
its operations.
The recommendation has long been anticipated by University
officials. Although the $108.2 million budgeted represents an in-
crease of $5.7 million over last year's funding, University officials
had hoped for a figure in the $110-120 million range.
MILLIKEN ALSO recommended a 5.6 per cent increase in
salary expenditures. Again, this figure is far less than the 13 per
cent increase the University maintains it needs to meet employe
demands.
Additionally, the governor requested $800,000 for increased
utility expenses; $350,000 for expected enrollment increases (most-
ly on the Flint and Dearborn campuses) and a $1.6 million appro-
priation for cost-of-living increases.
GEO reject

The recommendations sparked no immediate action within
the University. According to Edward Dougherty, assistant to the
vice president for academic affairs, "It's still too early to deter-
mine what effect the governor's recommendations will have.
"THE PROCESS of considering budget reductions in each
department is still going on, after.which the deans of each unit
will have an opportunity to appeal," Dougherty said.
University Secretary Richard Kennedy concurred, and pointed
out that the legislature has yet to act on Milliken's request. Ken-
nedy said, "We won't finalize anything until we have a clear idea
of what we'll wind up with."
The likelihood of a four per cent cut greatly increases the
chance that the literary college and other schools will cut the
Pilot Program and other low-budget innovations.
YESTERDAY'S recommendations represent an expected modi-
fication of Milliken's earlier policy on budget cuts. In a letter to
See GOVERNOR, Page 2

total

'

By JIM TOBIN and
ANN MARIE LIPINSKI
Five hundred fervent mem-
bers of the Graduate Employes'
Organization (GEO) overwhelm-
ingly rejected the University's
current contract offer at a
jammed mass m e e t i n g last
night.
But in an effort to bolster the
growing momentum toward a
strike and c o n s o1i d a t e its
strength, the union voted to de-
lay the final decision to take a
strike vote until next Wednes-
day at another mass meeting.
CLAIMING "reasonable" GEO
demands and citing "stalling"
tactics on the part of the Uni-
-+- --n I on M .. Mrk

offer
take a strike vote."
Strike fever pervaded the at-
mosphere of the meeting. At
almost every mention of the
word "strike," the members ap-
plauded. It apparent that if
drastic action is not taken with-
in the next week to bring the
two sides closer together on 13
key issues, the University will
be faced with a walk-ont of pos-
sibly 1000 Graduate Student As-
sistants (GSA).
THE TWO parties remain
miles apart, particularly on
economics. In addition to the
demand for an eight per cent
hike retroactive to September-
which the University granted on
Wednesdav-the union has de-

... :i .' :::": ::.:.: .. \ .{ :}:.. : .
13usiness
 ooms.
for Ethel
By BARBARA CORNELL
You got your marijuana deal-
ers, and your hashish, cocaine,
and peyote dealers. You got
your big-time interstate dealers
in flashy cars and sequined
pants, with fat bankrolls and
skinny arrest records. But you
ain't seen nothing till you seen
a dealer like Eager Ethel.
"Eager Ethel" comes on like
gangbusters in a matching roy-
al blue sweater-and-skirt com-
bo, and she's gonna deal you
some mean mess of Tupper-
ware.
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