ENDING MIDDLE EAST CONFLICT See Editorial Page Y 41it igau ~~IAit UNFORTUNATE High-T73 Lowo-5O 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 F YOU SEE NEMv HAPPEN CALL .DA Y 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. ! Oops! 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- ganizers. 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. City By GORDON ATCHESON 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 years. 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 faces dire financial Officials blame inflation, unwise p ing the past fiscal. year revenue estimates were intentionally exag- gerated. 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 difficult." 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 optimistically1 the responsibil "Council dem gets forcing ti take that appro han further c establishing ne sufficient funds SHEEHAN, com increased for fiscal 1973t attainable lev the budget toc proval. "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 PROCLAIM 'VICTORY IN SIGHT' Israelis blast toward Damascus 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. Nixon approved Agnew plea says 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. ISRAEL CONTINUED to say lit- 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- rael. 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 Rationing of oil use ordered 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- terday. 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. "0 bargainig, 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 Richardson 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 criminal from the Maryland WHILE proceedings stemming probe of corruption in politics. 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- offs. 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 tions." 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 priate. 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 gh of m0- e- o- he on z- ;p- on zz- he e- :er de e- he .S. :re ief SGC candidate claims Gill embezzled funds By JACK KROST 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- tion. 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?" mammamm