The Michigan Daily-Saturday, September 24, 1977-Page 5
State to probe
A2 investments
By MIKE NORTON
Ann Arbor officials are breathing
cautious sighs of relief now that the
panic arising from discovery of a series
of shaky and near-disastrous invest-
ments-which could have cost the city
as much as $1.4 million-has begun to
subside.
But investigators from the state
treasury department and the Municipal
Finance Commission (MFC)-a state
agency which supervises city invest-
ments-have stepped into the case and
are looking for evidence of illegal con-
duct. Thursday, city officials met with
representatives of the state agencies
and handed over a copy of the report
issued this week by City Administrator
Sylvester Murray explaining hii views
of the incident.
THE QUESTIONABLE investments,
known as arbitrage transactions, had
been going on since January. In an ar-
bitrage transaction, the city borrows a
U.S. treasury note from a brokerage
firm and then sells the note for
cash-hopefully for more money than
they paid for it in the first place. Top.
city officials say they were never in-
formed of the transactions until quite
recently, when they found the city stood
to lose anywhere from $800,000 to $1.4-
million.
Since state law requires each
municipality to have approval from the
MFC before borrowing money, it is
likely that the state will take some kind
of disciplinary action against the city.
The brokerage firm of Merrill, Lynch,
Pierce, Fenner and Smith, which han-
dled the suspect investments for the
city-and at one point supplied false in=
formation to city officials-is beyond
the legal reach of the state.
But most Ann Arbor officials doubt
whether the state will make things very
difficult for the city; on the contrary,
they seem glad to have turned the
whole mess over to higher authorities.
"It's in their hands now," said Acting
City Attorney Bruce Laidlaw. "My job
is finished.
State investigators have already
begun their proble of the investments,
and plan to issue a preliminary report
sometime next week.
-AP Photo
THE FRENCH/BRITISH Concorde jet, critized for its cost and noise, may the way for the possible increased landings.
soon be landing in 13 U.S. cities. The Carter administration yesterday cleared
Carter
WASHINGTON (AP) - The Carter
Administration opened the way yes-
terday for landings of the Concorde
supersonic airplane in as many as 13
U.S. cities on a permanent basis
beginning next year.
Transportation Secretary Brock
Adams said the Concorde wouldn't
threaten "the health and safety of the
American people" even though tests
have shown the SST to be consider-
ably noisier than subsonic jets on
takeoff.
The individual cities could act to
block landing by the Concorde,
OK's 13. cities for SST
however.
CITIES THAT could get Concorde
service are: Anchorage, Alaska;
B o s t o n; Chicago; Dallas --Fort
Wordth; Honolulu, Hawaii; Houston;
Los Angeles; Miami; San Francisco;
Seattle-Tacoma, and Philadelphia.
In addition, Washington's Dulles
International Airport a n d N e w
York's Kennedy International Air-
port already have, temporary federal
permission for Concorde landings.
Friday's action extends that author-
ity indefinitely.
Currently the Concorde only flies to
Washington. It has never been al-
lowed to land in New York because of
protracted court battles.
THE 11 NEW cities on the list
would receive federal permiswsion
only after the government completes
action on a new noise rule for the
sleek but noisy aircraft - a process
expected to take at least four months
and probably longer to complete.
That rule exempts the 16 Con-
cordes now in production from U.S.
Caution
Food co-op plans to
move on November 1 prevents
(Continued from Page 1)
according to Coop coordinators. They to regular customer Stephen Aulie.
have been offered the option of buying The Coop's objective is to get a new
the building but decided against it. home in the same area,acording to
"We've been looking toget out for a Weinraub.
while, the building isn't really sound, "The 4th St. Coop serves the North-
the space is a big problem and there is west part of town. We want to serve the'
no parking," commented coordinator Burns Park area," she explained.
H~elen Weinraub.
dorm
IT'S SORT OF exciting, but at the
same time scary," she added.
Basically a one-room affair, it resem-
bles an old-fashioned general store
where people can bring bags and jars to
hold their purchases. Customers who
work one hour a week in the co-op are
entitled to a 17.7 per cent discount. .
The store is frequented by both
students and non-students " 'cause the
food is- good, the people are friendly,
and the food is less expensive than the
local corner grocery stores," according
WEINRAUB SAYS the Coop has sev-
eral. prospective locations in mind at
the present time and members are
working on getting a loan.
"We want to buy but would consider
renting - preferably with a buying op-
tion," she said.
Although they are hopeful of a speedy
new site selection "it's going to take a
lot of energy, time and support," say
Coop coordinators.
They will meet September 28 to
organize fund-raising activities and
create a search committee.
rapes
(Continued from Page 1)
tells you not to," he added.
Security officers currently are at-
tempting to permanently eject in-
truders through Ann Arbor's Trespass
Act. An officer who spots a familiar
dorm crasher will serve him with a
notice. If the intruder is found in the
building again, he is subject to arrest.
"It's a little cumbersome and long,"
said Davids, "but it works."
IF TROUBLE arises, Davids
suggests calling University Security
rather than the city police. Police, he
said often are bothered with complaints
University Security can more readily
handle, such as missing books or com-
plaints of a neighbor's over-loud stereo.
If the situation requires police atten-
tion, it is still best to call University
Security.
"We can help you much quicker than
you can help yourself," said Davids.
University Security has a "hot line" to
city police as well as numerous security
officers stationed throughout campus
who can arrive on the scene before
police.
noise standards for subsonic jets that
were set in 1969 - after the Concorde
was designed and put into produc-
tion. But it requires that any other
SSTs built by the British and French
or by any other country meet the
same noise standards required for
new subsonic planes. I
Each airport would have to decide
itself whether to let the plane land,
Adams said. However, the airports
could not simply ban the SST
arbitrarily without adopting t h e
noise regulations that would prohibit
landings as well for some subsonic
jets.
OFFICIALS OF several of the
cities on the federal list promised
they would do everything in their
power to keep the Concorde from
landing in their community. Others
said they would welcome the '1,350
mile per hour plane and the short-
ened travel times and increased
business opportunities it is expected
to bring.
Yesterday's decision appeared to
run counter to President Carter's
campaing statements that the Ford
administration's approval of test
landings of the Concorde at Dulles
and Kennedy was a mistake.
Not all the cities which could get
Concorde flights. were upset at the
idea. Chicago officials had no com-
ment, and the issue has not been a
major one there.
TONIGHT AT 8!
Power Center
BEST SEATS! SUN.MAT & EVE.
POWER CENTER BOX OFFICE:
763-3333
OPEN SAT: 1-5, 6-8 p.m.;
SUN: 12-5, 6-8 p.m.
TICKETS ALSO AT HUDSON'S
LINA WERTMULLER'S
1975
Union files
(Continued from Page l)
"THEY HAVE no role in making
the decision," he continued, adding
"They must think they need some
publicity."
The University yesterday lifted its
indefinite suspgnsion of Joel Block
and announced it would reinstate the
former union leader to his original
custodial position with full back pay
for the more than five months he was
without work.
Block was suspended last March
for what the University claimed was
"serious misconduct." Block was
reportedly under suspicion by the
city for having made a bomb threat
on the administration building March
4. While the police maintained that it
had a telephone recording of Block
making the threat, no formal crim-
inal charges were ever filed.
THIS SUMMER, Block fought
court orders to submit a voiceprint
test, winning an appeal to a higher
court. In a completely different case,
the Michigan Supreme Court this
week prohibited the use of voice-
prints as material evidence in any
state criminal action.
George Washington, lawyer for
Block, said last night he believes the
Supreme Court decision was a major
factor in the University's dropping of
grievance~
the Block affair.
"They never did have the evidenc
to prove Block guilty, because he wa4
not guilty," Washington said. Thj
University "kept him on the streetst
for almost six months without really
ever charging him," the lawye4
added.
AFSCME has already filed anO
unfair labor charge against the
University on the grounds that they!
suspended him unjustly, according tot
Washington.
He adds that the reinstatement "isr
still not justice," because the former
union president's suspension inter-
fered with his campaign for election
to the post of union bargaining
chairman. Washington feels that the,
suspension was a major reason for
Block's now being out of a leadership
position at Local 1583.
Block could not be reached for)
comment last night.
THEANNARROR
FILM COOPERAIVE
is'acceping new members.
Stop by one of our showings
for an'application. ;
SEVEN BEAUTIES
GIANCARIO GIANNINI in another of his acting tour de forces with
Wertmuller. Playing the head of the family, he is beset with seven
ugly sisters whose honor he protects-only to wind up in the middle of
WW 11. A funny satire with a bite. In Italian and color.
Sunday: YOJUMBO
CINEMA GUILD
TONIGHT at
7:00 and 9:15
OLD ARCH. AUD. ,
Admission $1.50
1
B
'Temporary' lounge
residents to stay put
CINEMA II
ANGELL HALL
AUD. A
(Continued from Page 1)
Many of the women in the lounges
are just happy to finally be some-
place permanent.
FRESHPERSON Tracy Moir, who
now lives in a lounge on Markley's
fourth floor, started out the term in a
staff room on the building's second
floor. She signed a lease for a regular
space in Bursley, but found when she
arrived to move in that her room-
mate was a male. She went back to
Markley and signed a lease for the
lounge she now occupies, but on
Monday, when the room freeze
comes off, she is going to move
again, because of a disagreement
\ith her roommates about smoking.
"Ive met a lot of nice people, but all
this moving has been a real pain,"
she said. "The room is a little
crowded, but I really don't mind it."
"I really don't think it's too cool,"
said freshperson Sarah Kellogg, who
lives in a converted lounge in
Bursley. "It brings a negative atti-
tude to the whole housing office. I'm
not sure that they're too organized."
BOTH GIRLS were quick to point
out that both the staffs and the
residents made them feel welcome.
"Everyone's been very sympathet-
ic," said Kellogg.
"At first it was a hassle, but we
came through it well," said Markley
Building Director Leroy Williams.
"They are now part of the building
and part of the houses they live in."
"We just want to make them as
comfortable as possible and let them
get down to the business of being
students," Williams said.
Saturday, September 24, 1977
PHANTOM OF THE PARADISE
Director-BRIANDE PALMA (1974)
1970's adaptation of the PHANTOM OF THE OPERA depicts the haunt-
ing of a rock palace by a rejected and mutilated composer. A chill-
ing and sadistic film which draws upon Faust, Dorian Gray, PSYCHO and
of course, the classic horror films of the 30's. Music by Paul Wil-
liams. Stars Jessica Harper.
MEDIATRICS
PRESENTS
789
$1.50
THE STING
SAT. SEPT. 24-7 & 9:15
Natural Science Aud.
$1.50
The Ann Arbor Film Co-operative
TONIGHTI
Saturday, September 24
ROMEO AND JULIET
(Franco Zeffirelli, 1968) 7 & 9:30-MLB 3
"For never was a story more woe/Than this of Juliet and her Romeo."
Lush photography a beautiful soundtrack, wonderful swordfights, and the
most believable performers ever to portray Shakespeare's young, "star-
* FREE PIZZA
&BEER
Sunday . "A stone's
Sept.25 4 throw
l *,-inDpAA M-40 '*io rr '