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: