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October 12, 1973 - Image 1

Resource type:
Michigan Daily, 1973-10-12

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See Editorial Page


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See Today for details

Eighty-Three Years of Editorial Freedom

Vol. LXXXIV, No. 32

Ann Arbor, Michigan-Friday, October 12, 1973

Ten Cents

Ten Pages

Banks' mumbo-jumbo
If you're planning on financing any large purchases in
the near future, make sure you're nottripped up by local
banks' mathematical mumbo-jumbo. According to a re-
port released yesterday byPIRGIM, select branches of
Ann Arbor Bank, Huron Valley National Bank and Na-
tional Bank and Trust are violating federal truth-in-
lending laws by quoting misleading loan interest rates
over the phone. Under the law, a bank can only quote
the annual percentage rate-9 to 12 per cent-to a pros-
pective borrower. PIRGIM claims the banks have also
been giving the add-on interest rate - 5 to 6 percent-
which sounds cheaper than it really is considering the
terms of the loan.
TFs prepare demands
The newly-created University of Michigan Organiza-
tion of Teaching Fellows met last night to clarify their
demands before group representatives confer with Vice
President for Academic Affairs Allan Smith today. The
TFs are demanding a 10 per cent cost-of-living wage in-
crease and reinstatement of in-state tuition for TFs
this year. The groups says they will take "whatever
action necessary" to achieve their demands, including
a possible strike.
928 and 401
... ar this week's winning lottery numbers. The win-
ning numbers in the second chance drawing were 462
and 730.
Aid still available
The Office of Financial Aid said yesterday they still
have funds available for scholarships under the Basic
Educational Opportunity Grants program, Awards range
from $50 to $452. You must be a freshman, enrolled in
college for the first. time, a full-time student and a U.S.
citizen to qualify. Further, your 1972 family income must
be $11,000 or less (unless your family is larger than four),
more than one member is currently attending college,
both parents work or your family has had high medical
or emergency expenses in 1972). If you think you might
qualify, go to the financial aid office and fill out the Ap-
plication for Determination of Family Contribution and
mail it to Ivan W. Parker at the financial aid office.
Guild House director dies
J. Edgar Edwards, campus minister and director of
Guild House, died yesterday. He was 63. In a statement
yesterday, Rev.. Erwin Gaede said the staff at Guild
House was "shocked and deeply grieved" at the death
of Edwards. "His counseling with thousands of students
on personal, marital and conscientious objectors' prob-
lems are thorough and unexcelled, and his commitment
to higher education was creative and -stimulating,"
Gaede said. A memorial service will be held Thursday,
October 18 at the Congregational Church on William and
State at 4 p.m.
In yesterday's Daily we reported that a bucket drive
being conducted by the Coalition of Concerned Students
and Faculty in Support of Israel was aimed at aiding the
Israeli armed forces. In fact, all proceeds will go only
for civilian purposes, according to the coalition's or-
Blood for Mideast
The Red Cross will be conducting a clinic today for
those who wish to donate blood to victims of the Arab-
Israeli conflict. The clinic will be open from 1:00 p.m.
until 7:00 p.m. at the local chapter's operations center
at 2729 Packard Rd. Donald Peak, Executive Director of
the Washtenaw County Red Cross, urged those planning
to donate blood to call 971-5300 for an appointment to
enable the chapter to determine how many staffers will
be needed.
Happenings .. .
Cinema II is showing de Sica's Umberto D in Aud.

A, Angell Hall at 7 and 9 . . . Cinema Guild presents
Bergman's The Magician in Arch. Aud. at 7 and 9:05
. Mediatrics has Butch Cassidy and the Sundance Kid
in the Nat. Sci. Aud at 7 and 9:30 . . . it's shorts night
at the Couzens Film Co-op featuring W. C. Fields, Chap-
lin, Laurel and Hardy and Our Gang - Couzens Cafe-
teria, 8 and 10 . . . and the Cook Memorial Festival fea-
tures1The Legend of the Lone Ranger in Hutchins Hall,
Rm. 100 at 7 and 9.
Big surprise in Chile
General Augusto Pinochet, leader of Chile's military
junta, said yesterday that he has set no date for a return
to civilian rule in that South American country. The gen-
eral accused the elected government of President Salva-
dor Allende of having plotted to establish a Marxist dic-
tatorship and said the military would remain in power
"until justice and order reign again."
On the inside ---
. . . Dan Borus writes on the plight of Atlanta Hawks
star Tom Payne on the Sports Page . . . the Editorial
Page features a story by freelance journalist Robert
Manning on the use of video tape in courtrooms . . . and
the Arts Page has Cinema Weekend.

First of a two-part series
Ann Arbor now faces the woi
financial crisis in its history, p
marily because of a massive c:
debt accumulated over the past fi
Present and former city offici
blame the unprecedented $1 milli
deficit on the effects of inflati
including spiraling wages for mt
cipal employes, coupled with a s:
nificant leveling off in the cits
revenue sources.
BUT VARIOUS officials also
lo'ge that warnings about the ii
pending financial crisis were
nored, City Council followed unwi
spending procedures, and that di




Officials blame inflation, unwise p

ing the past fiscal. year revenue
estimates were intentionally exag-
As municipal employes began to
unionize in the late 60's, salaries
and fringe benefits, which .account
for more than three-quarters of
the annual city budget, skyrocketed.
Wages, like the cost of vehicles
and other capital investments, in-
creased yearly because of inflation,
further aggravating the prevarious
budget condition.
THE CITY'S revenue sources,
however, have failed to increase

as rapidly as government operating
expenses. For instance property
taxes, Ann Arbor's largest single
source of income, have remained
nearly constant over the past sev-
eral years.
Beginning in 1968, budget opera-
tions "got very tight" and con-
sequently the city administration
was "hopeful" that revenues would
be high but in some cases made
overly optimistic estimates, ac-
cording to former City Administra-
tor Guy Larcom.
Larcom, who held the city's top
job for 18 years until his retirement

last December, adds that despite
efforts to curb department sizes
and decrease equipment expendi-
tures, "holding the line on budget
appropriations became extremely
ALTHOUGH expenses continued
to rise under these stricter con-
trols, municipal services particular-
ly in the area of refuse collection
and police and fire protection de-
clined noticeably..
Ast. City Administrator of Fi-
nance Kenneth Sheehan confirms
that revenues have been estimated

the responsibil
"Council dem
gets forcing ti
take that appro
han further c
establishing ne
sufficient funds
com increased
for fiscal 1973t
attainable lev
the budget toc
"There were

in the budget I drew up," Sheehan
i. res says. He terms the increases "an
unwise approach to have taken"
and contends he warned Larcom
but places some of against inflating the revenue esti-
ity on council. mates.
handed balanced bud- Larcom flatly denies the charge.
he administration to "Sheehan prepared the figures and
)ach," he says. Shee- I didn't believe the numbers were
ondemns council for off," he counters, adding no dis-
w programs without agreements -arose over the budget.
to support them.
A REPORT submitted to council
however, claims Lar- last month by Sheehan shows the
1 revenue estimates bity incurred a $300,000 deficit for
to a realistically un- fiscal 1973, which ended in June.
el before submitting The debt directly resulted from
council for final ap. revenue overestimates and depart-
mental overexpenditures, according
definite changes put See ,CITY, Page 10





Syria deni eslam
amid heavy fighting
- By The AP' and Reuter
The Israeli military 6ommand claimed its tanks blasted
their way through Syrian defenses yesterday and were rumb-
ling along the road to bamascus.
Defense Minister Moshe Dayan predicted a quick victory
in the Golan Heights but did not say if the Syrian capital was
the objective.
IN A REPORT broadcast over Israeli television, Dayan
told his soldiers the Golan campaign would be decided in

AP Photo
SMOKE BILLOWS from an oil refinery located in the central Syrian city of Horns. Israeli jets blasted the refinery yesterday and have
raided the city for the past two days. The raids were part of the Israeli advance toward Damascus, Syria's capital city.





Israel's favor by this morning.
Syria ignored the claim of a
breakthrough on the Golan Heights
and said its forces there were hold-
ing firm.
Egypt and Syria claimed to have
taken a massive toll of the Israeli
air force during the day, and Syria
said its forces had intercepted the
advancing Israelis on the Golan
front, although conceding fierce
fighting was in progress.
tle about the situation on the Suez
A Canal, where the Egyptians report-
ed they destroyed 25 Israeli tanks
and perhaps have the upper hand.
Meanwhile, officials in Wash-
ington reported that the Soviet Un-
ion was continuing to airlift wea-
pons to its Arab allies, with the
bulk of the arms going to Syria,
- but they would not say whether
this was on a large scale.
THE U. S. State Department,
which warned that any major air-
lift by the Soviet Union would put
a new complexion on the situation
in the Middle East, is facing grow-
ing demands from congressmen to
speed up supplies of fighter-bomb-
ers and other equipment to Is-
The Beirut English - language
newspaper the Daily Star reported
that the U. S. had already begun
sending arms to Israel to replace
those lost in the renewed fighting,
but there was no confirmation of
he this in Washington.
te While the war raged on, surpas-
ly sing the 1967 conflict in duration,
t- Egypt and Israel both promised
sh last night tot"study"tan appeal for
an end to the fighting made by
Secretary-General Kurt Waldheim.
lyr- BUT AS the Security Council met
p- on the crisis, after a two day re-
ps cess, members were reported still
a- unable to break the deadlock that
a- has prevented adoption of a simple
ceasefire resolution.
he Waldheim referred in his state-
ut ment to the "important political
n- reasons" for the impasse.
he Informed sources said the fun-
- damental problem was that none of
se the combatants was ready to ac-,
See ISRAELIS, Page 2

of oil use
By Reuter
WASHINGTON, - The govern-
ment will impose a mandatory
home heating oil distribution pro-
gram today in face of the threat-
ened serious shortage of fuel, the
nation's energy chief revealed yes-
John Love, who direets the gov-
ernment's energy program, reveal-
ed details of a program to allocate
three million barrels a day of home
heating oil, diesel fuel, jet fuel,
and kerosene.
UNCONFIRMED reports s a i d
that Saudi Arabia, which has the
world's largest oilfields, has warn-
ed Washington it will cut off pe-
troleum exports if the administra
tion supplies Israel with fighter-
bombers to replace those shot
down in the fighting with Egyp-
tians and Syrians.
Love told reporters the refiners
will be required to give their sup-
pliers, down to the wholesale level,
the same amount of fuel oil they
received in the corresponding
month of 1972.
The allocation program covers
25 per cent of the 12 million bar-
rels of refined oil. produced in the
United States each day, but it does
not cover gasoline for cars or
crude oil.
STATES WILL be told to estab-
lish hardship review boards to re-
view the home heating oil prob-
lems in their areas.
The United States - particular-
ly the northeast and midwest - is
expected to face heating oil short-
ages this winter, depending on the
severity of the winter.

WASHINGTON (A) - President conference, Richards
Nixon approved the secret bar- White House couns
gaining that led to Spiro Agnew's hardt was the chiefr
resignation as vice president and arranging a deal be
acceptance of a felony conviction, prosecutors and Agn
Atty. Gen. Elliot Richardson said to avoid a prison seni
yesterday. ject Agnew to public
And in the wake of Agnew's de- possible civil suits fo
parture, White House sources re- unpaid tax dollars.
ported that Nixon believes he has a The attorney gene
free hand in choosing a new vice "hopes the American3
president and -need not avoid 1976 stand and support w
presidential aspirants in making his done."
choice. According to Richa]
IN A nationally televised news mer vice president fa


on said chief
el Fred Buz-
middleman in
tween federal
new's lawyers
tence but sub-
disgrace and
r thousands, of
eral said he
people under-
'hat has been
xdson, the for-
ces no further

from the

proceedings stemming
probe of corruption in
A STATE prosecutor

quickly supported Richardson's
statement, saying no further crim-
inal action against Agnew is plan-
med, Richardson said the Internal
Revenue Service may now bring
civil suits against Agnew for col-
lection of large but so far unde-
termined sums of taxes and pen-
alties on illegally received pay-

Egil Krogh indicted for lying
to grand jury tin Ellsberg case

Richardson said he related tf
substances of charges being pr
pared against Agnew to the Whi
House in late July and ear
August; he insisted that no ,a
tempt was ever made to quay
the probe.
"The President was kept ful
informed at all times," the atto
ney general said. "He fully a
proved each of the major stel
that were taken in the negoti
NIXON. SET no limits on tl
bargaining, Richardson added, b
'the President "was, of course, co
cerned as all of us were with tI
potential consequences of a pr
longed and agonizing trial of the:
issues of fact."
Richardson said that althobi
Nixon was told the substance
the allegations, the President hin
self asked not to be told the d
tails because he felt it inappr
The attorney general said tI
plea bargaining was set in moti
by White House counsel Fred Bu
hardt who telephoned him in Se
tember to suggest that Richardsc
meet with Agnew's lawyers. Bu
hardt "did not indicatethatBt
was acting at the President's h
hest," Richardson said.
THE BARGAINING stalled lat
in September because each si
refused to budge. Richardson d
clined to disclose details, but t
and Beall suggested that the U.
attorney and his assistants we
holding out for at least a bri

WASHINGTON (R) - A federal
grand jury yesterday indicted for-
mer White House plumbers' boss
Egil Krogh on charges he lied:
about the activities of two Water-
gate conspirators linked to the
Ellsberg break-in.
Krogh, already under indictment
in California on Ellsberg burglary
charges, is alleged, in a two-count
indictment of making false state-
ments on Aug. 28, 1972 to a federal
grand jury investigating the Water-
gate break in.
THE INDICTMENT said that the
grand jury wanted to know what
'I.,t-4 .- -A (-nrrnn airr

they were convicted in the Water-
gate break-in trial.
According to yesterday's indict-
ment, Krogh told the grand jury
he knew of no trips for the pair,
other than one to Texas by Hunt.
He testified that Liddy made a
trip to California to inspect "some
customs matters," and that he
knew of no other reason Liddy
might have gone there for the
White House, the indictment said.
KROGH SINCE has sworn that
Liddy and Hunt made two trips to
Los Angeles in August and Septem-
ber 1971, during which they engi-
neered the hiirolnrv of the office


SGC candidate claims
Gill embezzled funds

A candidate for Student Govern-
ment Council (SGC) last night in-
troduced a resolution claiming SGC
President Lee Gill embezzled $2800
of council money and demanding a
special presidential recall elec-
But Robert Matthews, the Cam-
pus Coalition candidate for SGC's
Engin school seat, admitted he
rnvih . not nrr a i-tPt ackMA

ment on Matthews' allegations,
which camne as this week's all-
campus election ended with a re-
cord low voter turnout.
Matthews' resolution, presented
for a firstsreading last night,
brands Gill as "the most corrupt
president in the history of stu-
dent government.
But Matthews could not support
his claims, saying, "Where did we
everv sav we have evidence?"


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