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See Today, Page 3
Vol. LXXXVIII, No. 21 Ann Arbor, Michigan-Saturday, October 1, 1977 Ten Cents Ten Pages
ouncilman: investments mishandled
By GREGG KRUPA ious decisions can be made without one comes out of this looking very by city investment policy and is very buy another note which the city role this misrepresentation played in
City Councilman Jamie Kenworthy public knowledge, that there is not good, nor do we deserve to." questionable under state law affect- hopedwould be more profitable. In the crisis.
(D-Fourth Ward) has suggested that sufficient accountability and checks Jedele, who said he had not seen ing investments made by communi- this case the second note lost According to Kenworthy's state-
several city employes acted improp- within the city's financial system, .Kenworthy's statement, responded, ties. drastically on the market. ment, "Merrill Lynch's behavior
erly in the city s recent unauthorized and that certain major authorities "Any comment to be made will come In an arbitage transaction the ALTHOUGH an investment coun- does not excuse or even explain the
investment transactions. and policies should not have been out of the city administrator's of- investor - in this case, the city - selor for Merrill Lynch, who has city's actions. As the link between the
In a statement released yesterday, delegated by the administrator" fice." Both City Administra:tor Syl-:::::::::::::::::::::::::::::..:..:*::::::::....citizens and the city employes, the
Kenworthy asks why City Controller Kenworthy charges in his report. vester Murray and Levin were out of "sCoui h t i to th blic:
Lauren Jedele and City Accountant Kenworthy continues, "I am re- town and unavailable for comment. These events show that serious decisions can be How as an accountant I could be
Marc Levin attempted to cover up lieved the city lost no money. The made without public knowledge, that there is not allowed to mace such transactions;
thle arbitrage transactions and why actions taken and people involved THE CITY inyolved itself in an how this mold bd b
they failed to notify the city adminis- leave me saddened and concerned, arbitrage transaction in January sufficient accountability and. checks within the the controllneycand sent betsigneNw
trator of the losing investments. He With the probable exception of the that almost cost the city $1.4 million city's financial system .. . -Kenworthy York; why a short-term transfer of
also accuses te investment officers Acting City Attorney (Bruce Laid- dollars. The transaction was ar- funds wa made between the control-
pf speculating with taxpayers' law), who immediately notified the ranged by Levin with the investment :"...: : : : : : : : : : : :::.::.:.:::.:..........::::::::::::: ler's office and Merrill Lynch in an
money, rather than investing it. administrator when he learned of firm Merrill, Lynch, Pierce, Fenner, borrows a treasury note from the since been fired, lied to the city about attempt to cover up the city's losses
these transactions and then helped and Smith. ' investment firm. The investor then how the note was doing on the at the close of the fiscal year June 30
"THESE EVENTS show that ser- negotiate the return of the funds, no The transaction was unauthorized sells the note and uses the money to market, Kenworthy downplayed the See KENWORTHY, Page 2
Frenh hijacker nabbed;
.4, /'r, air° .":grenade kills passenger
PARIS (AP)-Police marksmen
firing teargas grenades stormed a
hijacked French jetliner last night and
captured a blond gunman who had shot
a stewardess and threatened to blow
up the plane unless his recorded
political message was broadcast.
One passenger was killed and at least
four were wounded when the hijacker
lobbed a hand grenade toward the
cockpit as some 50 policemen forced
their way into the jet parked at Orly
Airport, a French official said.
PASSENGERS SAID some crew
members were wounded when shots
were fired inside the twin-engine
Caravelle and the hijacker was injured
slightly by a teargas grenade that hit
him in the head.
- But district administrator Jean
Perier said no shots were fired by
policemen carrying sidearms or the
hijacker, armed with a pistol.
"There I was absolutely no exchange
of fire," he said.
The lightning strike by specially
trained officers came more than eight
hours after the hijacker first comman-
deered the Paris-to-Lyon domestic Air-
Inter flight and held more than 90
passengers hostage. The gunman had
been negotiating with French officials,
warning them not to "try anything
stupid" or he would kill his captives.
POLICE IDENTIFIED the hijacker
as Jacques Robert. He became known
as France's "Pirate of the Air Waves"
after he burst into a radio station on
Feb. 8, 1974, brandishing a pistol and
phony grenade. Robert forced the
station to broadcast an incoherent anti-
government attack at that time.
After forcing the domestic jetliner to
land at Orly, the gunman released the
wounded stewardess and seven unhar-
med passengers, including a baby.
Hours later, after darkness fell,
another passenger leaped to the
macadam and freedom as a ground
crew brought food to the plane.
IN ANOTHER hijack development, a
Japan Air Lines DC8 left 'Tokyo for
Bangladesh today carrying $6 million
and six Japanese prisoners to meet
ransom demands of hijackers holding
142 hostages aboard another Japanese
jetliner.
The five hijackers, identified as
members of the ultra-leftist Japanese
Red Army and said to be armed with
guns and explosives, seized a JAL jet
Wednesday over India and forced it to
land at Dacca airport.
Japanese officials in -Tokyo said the
ransom plane loaded with cartons of
60,000 U.S. $100 bills and the prisoners
freed from Japanese jails left Tokyo at
6 a.m. today (5 p.m. EDT last night).
IT IS DUE to arrive in Dacca at 11:20
a.m. today (1:20 a.m. EDT).
The ransom jet also was carrying 6.6
tons of food, medical supplies and
clothing and 76 government and airline
officials led by JAL President Shizuo
Assada and Hajimi Ishii, a parliamen-
tary minister.
"We will do our best in carrying out
the duty requested by the Japanese
goverment," Asada told reporters in
'Tokyo. He refused to ay whether he
would offer himself as hostage in ex-
change for the passengers' freedom.
Beware ofdarkness nom more-
Night Owl buses roll Oct. 30
By PATTI MONTEMURRI
The "Night Owl" bus will ride again. Tentative plans call for buses to leave the Un
Initiated last November after a series of assaults on dergraduate Library every half hour from 7 p.m. to 1
women near campus, the service will follow last year's a.m., seven days a week. The buses-blue, 15-passenger
route and time schedule starting Sunday, October 30. University vans-make regular stops on Hill Street, Ox-
That's the day Michigan residents set their clocks back ford Housing, the hill dormitories, University Hospital
an hour to make the switch from Daylight Savings to and the Geddes Bus Shelter.
Eastern Standard Time, causing darkness to fall earlier
on campus.
Bursley residents are banding together to form a night
"WE JUST PUT our heads together and decided this "escort service." See story, Page 3.
would be a good time to start," said Henry Johnson, vice-
president for student services, who with University
President Robben Fleming and Vice-President and Chief THIS IS THE same schedule as last year. Other stops
Financial Officer James Brinkerhoff made the final may be added to the route if a need is shown to service
decision to reinstate the service. other areas, Johnson said.
The bus was discontinued last May when the term's end Letters from Oxford Housing staff and various
and warmer weather caused a decrease in riders. See HAVE, Page 3
C.EEU.......F E AGAIN:...................... .......t.,....
CAR TER, REB UFFED A GAIN:
Deregulation
WASHINGTON (AP) - The Senate, baum (D-Ohio). "I gue
in still another major setback for sup- tinue the filibuster for a
porters of President Carter's energy days, maybe two week
plan, yesterday refused for the second trouble."
time to set aside a plan lifting federal Metzenbaum said c
controls on natural gas prices. tees, opponents of der
The 50 to 44 vote demonstrated that in only a few votes shy of a
several days of a marathon filibuster Abourezk (D-S.D.)j
by foes of deregulation, the administra- leading the filibuster.
tion had been able to pick up only two. However, one key
votes in its efforts to retain controls supporter, Sen. Dale Bu
over the critical fuel. said it appeared to him t
Nonetheless, filibuster leaders re- the Senate on natural ga
fused to give up and said yesterday's
vote might be overturned. "I THINK the handw
"OUR INTENTION is to continue the wall and we ought to ge
filibuster," said Sen. Howard Metzen- said.
wins round
ss we could con-
another week, 10
:s without much
ounting absen-
regulation were
tie. Sen. James
joined him in
administration
impers (D-Ark.)
that the battle in
as was over.
,riting is on the
t on with it," he
Should the Carter administration con-
cede defeat in the Senate, the natural
gas issue would go to a House-Senate
conference committee. The House has
approved Carter's plan for a natural
gas ceiling of $1.75 per thousand cubic
feet.
Sen. Henry M. Jackson (D-Wash.)
See FOES, Page 3
Singing for Jesus Daily Photo by JOHN KNOX
The wet, cool weather failed to dampen the spirits of this Bible Church choir, which sang on the steps of the Graduate Library
at noon yesterday. Some 50 people gathered to hear the foot-stomping performane.
' profs tangle over
Bakke case
Carter plans a 'town
meeting' for ,Motown
By MICHAEL BECKMAN
In what could have been a dress
rehearsal for the arguments to be heard
before the U.S. Supreme Court on Oct.
12, Profs. Carl Cohen and Terence San-
delow engaged in an animated debate
of the issues involved in the Bakke
reverse discrimination case before an
overflow audience in Hutchins Hall
yesterday.
Alan Bakke, a while male, claims he
was twice denied admission to the
U1niversitv n Caifornia naviMed Miea1
the National Board of Directors of the
American Civil'Liberties Union, mixed
legal and philosophical points
throughout his emotional presentation.
He argued that any special admission
program that gives preference on the
basis of skin color is illegal and morally
wrong.
"There are stupid whites and stupid
Daily Night Editor Linda Willcox ex-
plores the Bakke case and its
ramifications for the University's own
WASHINGTON (AP) - President
Carter will visit Detroit on Oct. 21 to
meet with inner-city residents to
discuss their problems, a White
IN THE afternoon, Carter will fly
to Des Moines, where he will spend
the night in a private home after
addressing a state Jefferson-Jackson