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Vol. LXXXVIII, No. 27 Ann Arbor, Michigan-Saturday, October 8, 1977 Ten Cents Ten Pages
BPair pushes co-op at Hur-on Towers
are pushingntosconertotheifinanciall
troubled apartment complex to aDA SIDhhareivdoloe
cooperative, complex has been converted to a co-op. THEY CLAIM that unless a co-op is THEY ESTIMATE that ten per cent Huron Towers to a co-op, however, will DA IDhhsreivdny e
Tom Stitt and Jonathan Klein, both Last week the University shelved a formed, Huron Towers will be sold to of the tenants have already signed not guarantee that they can buy the firm inquiry from a non-profit group .~,
active in local co-op housing previous interest in purchasing the private -interests seeking tax petitions-a response they call "very apartments. terested in purchasing the building. Bil
organizations, are asking their n'eigh- apartments at 2200 Fuller Rd., near shelters-making higher rents encouraging." George Day, a special assistant at he said that it is '"a little premature"$6
bors to sign a petition for cooperative North Campus. The price tag for inevitable. "Private investors will use The two are hopeful that the HUD's Detroit office, said that before expect great interest at this point.
ownership of Huron Towers in an at- repairs and conversion to all-student it just for a profit,'' said Stitt. "Repairs eessary number of tenants' will give entering any negotiation his office tHuron Towers' most recent ovvn&r
tempt to keep it from beinig taken over housing was considered too highi by the will continue to be neglected and rents their written support within three would have to determine if "selling the the Michigan Education Honde
by a private firm, If 75 per cent of the University. Since the announcement, will go up to cover increased mortgage frk-eoe h 6-ntope s ompx HU' pont ol view "easould building ino ateachers'co rert t
tenants sign, the Department of University officials have declined payments." offically put up for sale. .have to conduct an inves gation tosee villa. But relatively few retirees oc
Housing and Urban 'Development comment, saying their interest in Under co-op management, each -ohebucdnu f
(HUD) would be legally bound to Huron Towers is over, resident would, have a vote in decisions Stitt and Klein are holding a meeting if sales proceeds to a co-op would equal thebuildng &nowd manae frHUD b
discuss the co-op option with residents. HUD f ozeclosed on the com- concerning rent, levels of service tomorrow night at the complex, where wat e would get on the open Reaume nae &thodd , lcamlelt fisr
plex-which has been in default on its provided, and other matters. they expect to collect more signatures. make, hesi.'iue dicat thbope s
SHOULD THE complex become a co- mortgage since it was built-earlier Stitt and Klein formed the Concerned Hall representatives will be chosen to But Klein said he is confident that cupied mainl by professional busines
op, it would mark the first time in city this year. HUD pla'ns to put tige building Residents Committee of Huron Towers help gather supportive residents finding a good source of financing won't pee, wh o account for 60 per cent loW
history-and one of the few times up for sale within a month, a move Stitt and distributed petitions to each throughout the twin 12-story towers. be a difficult task t nants, an students, who account
nationally-that a large apartment and Klein don't want to see, resident this past week. TENANT SUPPORT of converting "We're talking about a valuable piece for 20 per cent. The remainng 20 pe
of real estate and there are a lot of op- - See TWO, Page 10
tCuf daatmn cmlx oa

s enate

passes
minimum
wage bill
WASHINGTON (AP) - The Senate
yesterday passed 63 to 24 a bill to
increase the federal minimum wage
from $2.30 an hour to $3.40 in four an-
nual steps by 1981 but rejected
proposals to permit employers to hire
teenagers and the elderly at lower
wages..,
The Senate accepted a compromise
offered by Sen. Dale Bumpers (D-Ark.)
to exempt from the law . small
businesses having less than $275,000 in
gross sales on July 1, 1978, and less than
$325,000 in gross sales on July 1,1980.
EMPLOYES already earning the'
minimum wage could not have their
pay reduced or hours lengthened.
That compromise was agreed to by a
voice vote, and sidetracked proposals
to increase the exemption for small.
businesses from $250,000 annual gross
sales to $1 million or to $500,000. A
house-passed bill would raise the.
exemption to $500,000.
Voted down were four amendments to
exempt or lower the minimum wage for
teenagers.
A PROPOSAL by Sen. William Scott
{R-Va.) to permit employers to hire
persons over 68 years old at 75 per cent
See MINIMUM, Page 10

Import cut
to inflate
steel prices,
study says

..

WASHINGTON (AP) - Restric-
tions on imports of foreign steel prob-
ably would encourage U.S. steel-
makers to increase prices but would
dp little to add jobs or increase pro-
duction, a Carter administration
study said yesterday.
Problems in the industry primar-
ily stem. from rising costs .and-
sluggish demand for steel in this
country rather than from competi-
tion from imports, it said.
"THE FINANCIAL position of the
industry would be strengthened only
if the reduced import competition
allowed them to increase prices,"
said the study repared by the
administration's Council on Wage
and Price Stability.
But the report warned of the infla-
tionary consequences of higher
prices, even if they are economically
justified, because, the steel industry

already is "a major source of infla-
tionary pressures.
It said steel prices have been
raised 79 per cent since 1972, which is
24 per cent more than other domestic
industrial prices. But profits in the
industry are still depressed and costs
of materials and labor are expected
to continue-rising a ta rapid-rate, it
said.
"NO SINGLE factor can be identi-
fied as responsible for the industry's
difficulties and no single action by
the government, the companies or
the workers can solve them," said
the council's director, Barry Bos-
worth. 4
The study was one of two being
prepared on the steel industry's
problems by the administration. An
interagency study that will make

Daily Photo by JOHN KNOX '
Practice makes perfect ...
. ... so Cheryl Lasher practices away on her dulcimer yesterday on the corner of State and N. University before '
venturing out for her regular lesson. A dulcimer, by the way, is a wooden ... kinda odd-shaped.., it has strings.., oh,
heck. Just look at the picture.
- ,.r,..., .. . . * ............ ... .,.., .

See LIMITED, Page 10

II SPIT A L, MED LIBR AR Y INCLUDED:

Milliken endorses 'U' projects

By DAVID GOODMAN '
Governor William Milliken yester-
day announced his support for over
$170 million worth of University
building projects, including a $140
million hospital complex and a new
medical library.
The hospital and library projects
were two of four University construc-
tion proposals supported by the gov-
ernor. He also endorsed for funding
an additional 17 projects under the
State Building Authority. The author-
ity has the power to issue up to $400
million in bonds to pay for state
construction projects.
MILLIKEN said the building auth-
ority "will allow many needed con-
struction projects to proceed - the

bulk of which have been delayed for
years."
The governor's list also included a
"Library and Learning Resource
Center" at the University's Dearborn
campus and a laboratory and class-
rodm building at the Flint campus.
Despite Milliken's support, the
projects have a long way to go before
the funds are actually approved. The
state legislature must also approve
the building plans, and will consider
the projects one at a time.
THE LIST first goes to the Joint
Legislative Subcommittee for Cap-
ital Outlays, chaired by Rep. Russell
Hellman (D-Ironwood). According to
Hellman, the subcommittee will
review the proposed building proj-

Milliken

It ain't the Statehouse

ects, discuss any changes it wants
with the governor and try to reach a
consensus.
"We're equal partners on this
thing," Hellman said. "Each one of
these (projects) have to be approved
on an individualbasis."
Some of the building proposals
have already received planning
funds from the state, while others -
including the hospital complex -
have not been studied yet, Hellman
said. Action on the new hospital is "a
long way off," he noted.
ACTUALLY, the University Board
of Regents has not yet formally
endorsed plans for a new University
Hospital to replace the aging struc-
ture on E. Ann St. Top administra-
tors, however, agree on the need for a
new building, and Milliken had pre-
viously approved the idea.
No site has yet been chosen for the
building, although several are being.
discussed.
The medical library was approved
by the Regents at their September 16
meeting. The University plans to ply
for the building - expected to cost a
little over $8 million - -with a
combination of federal funds, state
appropriations and private gifts.
THE LIBRARY would serve the
Medical School, School of Nursing
and University Hospital. It would
have about 132,000 square feet of
floor space, with -room for 327,000
volum}es.

Mandel gets 4
BALTIMORE (AP)-Maryland Gov. Marvin Mandel,
convicted of trading his influence for $350,000 worth of
gifts, was sentenced yesterday tb four years in federal
prison by a judge who skid he had "many good qualities"
but had made "some serious mistakes."
Maridel, a Democrat who followed Republican Spiro
Agnew to the Maryland statehouse in 1969 and became one
of the most powerful figures in state political history, was
suspended from office immediately after the sentencing.
However, he did not resign, and could regain office if his
conviction is overturned before his term is up in 1979.

years in poke
federal crime since Iowa Gov. Warren MacCray was
convicted of mail fraud in 1924.
Mandel's co-defendants received penalties ranging
from four years in prison and $40,000 fines to imprison-
ment for 18 months.
U.S. District Court Judge Robert Taylor allowed all six
to remain free without bond. Should their convictions be
upheld on appeal, they would be eligible for parole as soon
as they enter prison. Federal authorities, however,
generally wait until a third of a prisoner's term is over to
grant parole.

Lappe _ o
Scarcity no cause of
world hunger-expert

By JANET KLEIN

LAPPE SOUGHT to prove her point