RISKS OF
PHASE THREE
See Editorial Page
Yl r e
S i 1au
. it
CRYSTALLINE
High-22
Low-19
For details . .. see today
Vol. LXXXIII, No, 84 Ann Arbor, Michigan-Friday, January 12, 1973 Ten Cents
Ten Pages
today...
if you see news happen call 76-DAILY
Fire destroys apartments
An early morning fire routed 27 tenants of the Village Green
Apartments, 4800 Washtenaw, Pittsfield Township, into near zero
weather and destroyed eight units on the second and third floors.
One tenant was treated and released for smoke inhalation.
There were no other injuries. Cause of the fire is being investi-
gated.
Milliken calls for reform
LANSING - In his annual "State of the State" message pre-
sented before the Legislature yesterday, Gov. William Milliken
called for major revisions in the state's tax structure. The gover-
nor said he will propose revisions which would reduce taxes by
about $370 million over the next two fiscal years. This would
be accomplished through a new property tax credit for home-
owners and renters, and an increase in the personal income tax
exemption from the present $1,200 to $1,700. Milliken requested
new programs to improve the state's correctional system and
insure that "all iiimates are treated as individuals." He also
called on the legislature to revise the "chaotic" welfare sys-
tem; which he says currently satisfies no one.
Happenings...
. . . include such goodies as a swim meet (Michigan meets
Wisconsin in Matt Mann Pool at 7:30 p.m.), a hockey match
(Michigan meets Denver in the Coliseum at 8 p.m.) and a folk
dance (Barbour Gym, 8-11.) You might also want to take in
Prof. Ken Cagn's talk on "The Nature of Federal Research
Programs: Assumptions and Myths," 1040 Natural Resources
Bldg., 4:15 p.m.
Bye bye, big brother
GALESBURG, Ill - Prisoners at Knox County Jail won't have
to wonder if big brother is watching any more. The County Jail
committee has decided to discontinue the use of its closed cir-
cuit television system which currently monitors the activities of
prisoners in their cells. The announcement to terminate the
services of the video watchdog was made after the committee
listened to reports of prisoners smearing mashed potatoes over
the lenses of the cameras.
Chess tourney
Attention, chess buffs!! The Ann Arbor Open chess tourna-
ment will be held at the Ramada Inn on Fourth St. and Huron
this weekend. Between 90 and 120 of the best (and worst) players
in the state are expected to attend. If you're a compulsive pawn
pusher, or even if you're not, sign up before registration closes
at 9:30 a.m. Saturday. The entry fee is $12. Players must also
hold membership in the United States Chess Federation and the
Michigan Chess Association, both of which can be purchased at
the door. Call Randall Shepard at 973-1475 for details.
Don't pass go
ATLANTIC CITY, New Jersey (Reuters)-If you are one of
the hundreds of millions of people who play the Parker Bros.
game ,"Monopoly," you may be happy to know that you can
still land on Baltic or Mediterranean Avenue. An ordinance pro-
posed by Atlantic City Commissioner Arthur Ponzio, if passed,
would have changed the names of those historic streets, na-
tionally known through the game of Monopoly which was pat-
terned after the streets of the resort. But the proposal was unani-
mously thrown out yesterday. The street name change, had it
been adopted, would have made it easier to locate Atlantic City
addresses. Both Baltic and Mediterranean Avenues run almost
the length of the resort but at different locations change their
names, confusing residents and visitors alike for years.
Dope notes
LOS ANGELES-Authorities report that Lance Rentzel, wide
receiver of the Los Angeles Rams, has been booked for investiga-
tion of possession of marijuana for sale. In his second run-in with
the law in 20 months, Rentzel was taken into custody this week
when police with a search warrant found a half-pound of dope at
his Hollywood home. In Fairfax, Calif., Grateful Dead rock group
guitarist Phillip Lesh has been arrested for investigation of
possession of marijuana and dangerous drugs. According to
police, Lesh's home was invaded on a warrant based on informa-
tion from a young woman who said she was offered drugs at that
house on Monday. Authorities found undisclosed quantities of
marijuana, hashish and an assortment of hallucinogens.
' Nixon
1ends
announces
Phase
Three,
onto
nost
wage-price
Critics predict action
may lead to inflation
By Reuters and The Associated Press
In a surprise move yesterday, President Nixon announced
his administration was abandoning compulsory wage-price
controls except for food, health and construction costs.
He revealed his new economic policy, or Phase Three as
it is being called, in a message to Congress that largely ended
a 17-month program of mandatory curbs and switched to a
voluntary system of holding down wages and costs.
The President, in effect, returned to the days of "jaw-
boning"-voluntary cooperation by business and labor with
its wage-price guidelines backed by the threat of govern-
ment intervention if unions made unreasonable wage de-
mands or prices soared.
Nixon retained a big stick by threatening government
action, presumably new controls, if his voluntary ,wage-price
guidelines were seriously breached.
Authority for new action by the administration if volun-
tary curbs failed is contained in economic stabilization legis-
lation, which Nixon today asked Congress to extend beyond
April 30, when it is due to expire.
----AP Photo
Breaks barriers
Emily Howell, 33, yesterday became the first woman pilot of any scheduled airline in the U.S. Howell will serve as a second officer on
a Boeing 737 for Frontier Airlines.
PRESIDENT CHALLENGED:
.The most frequently heard
view in early reactions to Presi-
dent Nixon's action yesterday
was that Phase Three would
help corporate profits while
raising renewed risks of a
more rapid pace of inflation.
Despite the Administration's
pledge to end inflation, the in-
dex of wholesale prices experi-
enced the largest single month
rise last December in the past
twenty-two years.
"Mr. Nixon is running some
very substantial risks," said
economist Walter Heller of the
University of Minnesota, for-
merly head of the President's.
Council of Economic Advisers
under presidents Kennedy and
Johnson.
"A great deal depends on
how much they use the club
they kept in the closet," Heller
said. "If they're willing to use
it, then the substance of the
changes is not as great as the
appearance of the changes.''
The "club" referred to by
Heller was the power retained
by the Cost of Living Council
to roll back price increases
which e x c e e d government
guidelines.
The guidelines tell corporations
Cabinet members
must testify
on demand, Senate Dems insiost
WASHINGTON (Reuters) -
Senate Democrats yesterday
unanimously voted to secure a
pledge from new Cabinet offic-
ers that they will testify on de-
mand before Senate committees
as the price for their confirma-
tion.
The vote at a caucus of Senate
Democrats was touched off by
the refusal of Secretary of State
William Rogers and presidential
adviser Henry Kissinger to brief
the Senate Foreign Relations
Committee on the bombing of
North Vietnam and the Paris
peace negotiations.
Altogether 37 Administration
nominations are pending before
the Senate - six for cabinet
posts and 31 for sub-cabinet of-
ficers.
First casualty of this and
other toughening Senate Demo-
cratic attitudes over the Indo-
china war is likely to be Elliot
Richardson, nominated to be de-
fense secretary.
On the inside . .
On Arts Page, Cinema Weekend returns this term with
your very own copy of the lyrics to "Rock Around the
Clock" (of the movie of the same name) . . . Eric Schoch
takes a look at Phase Three on the Editorial Page . . .
Basketball and hockey stories on Pages 8 and 9 . . . Lot-
tery numbers are on the back page.
The weather picture
The best weather of the winter is in store for the upcom-
ing weekend-if you plan to go skiing. Freezing weather
all week across the Great Lake State allowed most ski areas
to operate snow-moking equipment and build bases. The
slopes of Pine Knob reports a 15 inch base. Those who
aren't going to be sinking into the slopes this weekend can
find contentment sinking into the books as a crisp 23
degrees may prove to be the highest we'll get today. The
usual chance of snow flurries may accompany these en-
vigorating temperatures providing a picture-postcard
background for getting an early start on those term papers.
Steigerwalt selected
as HRP coordinator
Sen. Harold Hughes (D-Iowa),
said he would try to block Sen-
ate approval of Richardson un-
til after the inauguration of
President Nixon on Jan. 20 un-
less the President makes a pub-
lic statement explaining the
bombing of North Vietnam and
the situation in the Paris peace
talks.
The Democratic caucus policy
statement concerning Cabinet of-
ficers declared: "A prerequisite
to confirmation is the commit-
ment of presidential appointees
to appear and testify before duly
constituted committees of the
Senate in response to committee
requests."
The resolution would not affect
Cabinet officers already ap-
pointed or personal aides to the
President, such as Kissinger.
e The Democrats put off action
on personal aides by narrowly
lt defeating 19-17 another resolu-
d tion designed ,*to require all
presidential appointees to appear
y before committees.
r- S e n a t e Democratic leader
y Mike Mansfield (D-Mont.) said
ot the Senate Policy Committee will
take up that issue at a later
n- date.
n Sen. Hubert Humphrey (D-
ie Minn.) told reporters: "This is a
ir, very important point in constitu-
al tional government -- whether we
are going to let the executive
branch treat Congress with con-
tempt. I for one am not going to
let them, do it."
Sen. Gale McGee (D-Wyo.)
also warned that Congress may
refuse to approve budgets for
government agencies.
The Senator said the resolution
did not go far enough and said
the Appropriations Committee
should block money for executive
branch agencies until the Cabinet
officials give an accounting of
their financial and other policies
to Congress.
Yesterday's action by Senate
Democrats looked to some ob-
servers like part of a growing
trend in the legislativetbranch
toward reasserting its constitu-
tional powers.
Speaker of the House Carl Al-
bert (D-Okla.) recently made a
similar move when he announc-
ed that the House would cut off
war funds by a rider on the first
appropriations bill of this ses-
sion. Indications like this make
many sources claim Nixon will
experience difficulty with Con-
gress for the next two sessions
despite his landslide victory at
the polls in November.
Congress has also challenged
the President's withholding of
funds it had appropriated.
GEORGE SCHULTZ an-
nounces P r e s i d e nt Nixon's
plans for Phase Three of the
economic controls yesterday at
the White House.
to boost prices only if required by
rising costs, and to try to keep increases down to 1.5 per cent a year.
Furthermore, firms are not to make any increases which would raise
their profit margins over base period levels.
The health, food and construction fields would remain subject- to
stronger controls, as special cases.
"My estimate of 3 1-3 to 31 per cent inflation in 1973 has to be
re-examined now," Heller said, "not downward, but upward."
Paul Samuelson, a Nobel Prize-winning economist, predicted after
the announcement that inflation would exceed 4 per cent in the com-
ing year. The Nixon administration's target is 2.5 per cent.
Nixon also abolished the government's Pay Board and Price Com-
mission which, under the general direction of the Cost of Living
Council and the White House, administered the controls.
John Dunlop, Chairman of the Construction Industry Stabilization
Committee since 1970, was named as Director of the Cost of Living
Council, replacing Donald Rumsfeld, who has been nominated as the
new U.S. ambassador to NATO.
Nixon also created a new labor-management advisory committee
of five union leaders and five corporate executives to advise on any
changes in pay standards.
Among the labor leaders appointed to the committee were George
Meany, president of the AFL-CIO and Leonard Woodcock, President
of the United Auto Workers.
Meany described the President's order as "a step in the. right
direction toward eliminating inequities in the present controls system."
"By GORDON ATCHESON
In a bitter, closely contested
battle, the Human Rights Party
(HRP) elected Susan Steigerwalt
to the post of party coordinator at
a mass meeting last night.
The meeting, attended by over
300 persons, was characterized by
clashes between the three major
factions within the party.
Steigerwalt, endorsed by the
Chocolate Almond Caucus, won a
narrow victory over Robert Alex-
ander of the Militant Middle and
the Rainbow People's Party (RPP)
)OM
IMPENDING D0
candidate Linda Ross in the rac
for coordinator.
The final tally gave Steigerwa
112 votes, Alexander, 110, an
Ross, 109.
During the lengthy debate, Nanc
Burghardt charged "RPP has pan
ticipated in HRP politics in a ver
opportunistic way. They have nc
helped to build this party at all!
"We have never had the inter
tion of taking over the Huma
Rights Party," countered Geni
Plamundon, who with John Sinclai
led the RPP contingent. "Our go
is to build a workable party in An
Arbor."
Others in HRP stated the app
rent split with RPP is not irrec
concilable. "We are willing to wor
with anyone but it is largely u
to RPP, if they want to work wvit
us," declared Nancy Wechsle
HRP councilwoman from the Se
and Ward.
"There has not been enough ta:
about political directions with
HRP," claimed Steigerwalt. Sh
also indicated HRP must tryt
reach more than the student con
munity to function as a viable thir
party.
Steigerwalt received endors
ments from several HRP 'chie
Officials predict flu epidemic
By CHARLES STEIN
Thousands of people in Moscow have it. Several
of the Washington Redskins have it. And if state
public health officials are correct, as many as
one-half of Michigan's residents may have it soon.
Yes, folks, it's the London flu, the latest strain
of influenza virus that is appearing in epidemic
proportions in many parts of the world.
While no cases of the disease have as yet been
confirmed in the city, doctors at the University's
The particular strain of flu under examination
was initially discovered in India several years ago,
but was first isolated in the laboratories of the
World Health Organization (WHO) in London.
For some strange chauvinistic reasons, the Brit-
ish doctors must have considered it an honor to
have a disease named after their capital city and
hence the name "London flu."
Maasab relates that the virus is very similar in
ctrength to the Hong Kno variety that hit the
in
a-
C-
rk
m
me
th
-
he-
f-
By CHRIS PARKS
For Guy Larcom, 17 years at
the top of
the slippery pole as Ann Arbor's first and
only city administrator will come to an end
in March of this year.
Larcom's resignation was accepted with
regret by City Council Dec. 18, marking the
beginning of the end for the career of a
man respected by some, loathed by others
and acknowledged by many to be the most
powerful single force in Ann Arbor city
government.
Larcom leaves city post
it's time to retire. The pressures of the job
never get less, and I'm not going to try to
handle that."
Views on Larcom's performance in his 17
years in office vary throughout the city.
Mayor Robert Harris, a Democrat,
eulogizes Larcom as a man of "extraordi-
nary skill and devotion" in a statement pre-
pared following the announcement of his
retirement.
GOP senior spokesman James Stephen-
son who served on city council during Lar-
jjjjjjjjjjffmw i W: