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Vol. LXXXVIII, No. 30 Ann Ann Arbor, Michigan-Wednesday, October 12, 1977 Ten Cents Ten Page
New bill may aid border state students
By KEITH RICHBURG bor), has already passed the full House a similar "compromise agreement" to point out the pitfalls of reciprocal rocity?"
Ohioans Gregory Netter and Joel to attend the University of Michigan, and is currently awaiting debate in the already on the books in Michigan, but tuition.
Greenson live two miles from the Mich- Michigan State University, and Wayne State Senate Education Committee, the big three - Michigan, Michigan fSAYS ASSISTANT University Reg- The current system is unfair, says
State University at in-state tuition The universities concerned must State, and Wayne State - are exempt. istrar Larry Katz, "It's super for the Netter, whose family owns a summer
home just outside of n drv to the Uni- rates. The plan would be "reciprocal" agree to the plan before it could take f The Bullard bill applies exclusively to smaller schools, like Eastern and Nor- house in Monroe, Michigan.
versity in an hour flat. Yet as out-of- in that Michigan residents would be feet. At the University, the Regen those three schools not covered under thern, but we have some 9,00plus non-
state students, they mnust pay $1,10 able to pay the in-state resident rates at have the final vote on matters affectin the already existing agreement. No residents." the (sme ouse, and Mn
more each term than Michigan rei- s states pub colleges and uni- tuition. timetable is set for a vote before the full Katz also sees the reciprocal agree- property taxes are a hel o a t or
me eachetsrmthanMichiganaversitid. Alat- Senate, as the bill has not yet been ac- ment as discriminatory. "You can have t
dents. A es n source, an aid to Rep-yta nOi.BtImsilntcni
Under a pending plan however, that The states affected would be Ohio, resentative Bullard, says "Michigan cepted on the Education Committee an Ohio student who lives on the Ken- ered a resident."
could soon change pIndiana and Wisconsin. The bill also en- State is against it. of M and Wayne agenda. tucky border. What's to say he's en-
compasses the Canadian province of State are fr " While the mere fact that House Bill titled to pay Michigan tuition while a Adds.Greenson "If Michigan had
IF HOUSE BILL 4483 passes the state Ontario, which includes Windsor. THE OHIO LEGISLATURE has al- 4483 has at least passed the entire student from New Jersey is not?" won the Michigan/Ohio border dispute,
legislature, students from the border The bill, introduced by State Repre- ready passed a reciprocal plan, and ex- House may be enough to make border- "How do we make a legitimate case it could have saved us. We'd have $4,000
states and from Ontario would be able sentative Perry Bullard (D-Ann Ar- pects it to go into effect by 1978. There is state students rejoice, critics are quick for a discriminatory action like recip- in our pockets right now."

City

faces

new investment

woes

Questionable security transaction
may result in $100,000 loss

By GREGG KRUPA
According to an audit report made'
public at Monday night's City Council
meeting, the city is still engaged in
long-term financial speculation of
questionable legality.
City officials have until Friday to
decide whether they will continue
their involvement in the investments.
But if officials cash in the invest-
ments before Friday, the city will
lose $100,000.
The audit, conducted by the Ann
Arbor firm of Icerman, Johnson, and
Hoffman, reveals that the city, by its
involvement in the long-term trans-
actions, called reverse repurchase
agreements, "may be found to be
borrowing funds without Municipal
Finance Commission or City Council
approval."
ON FRIDAY, the city must either
decide to repurchase the securities
which were sold for $2' million, with
an added $20,000 in interest, or cash
in the securities and absorb a $100,000
loss. However, if the decision is made
to repurchase the securities, the city
will be persisting in a speculative
agreement of questionable legality.
The state must approve borrowing
by communities through the Munici-
pal Finance Commission.
In reverse repurchase agreements,
the city sold securities for cash ($2
million) and simultaneously agreed
to repurchase the same securities at
a later date for the same amount plus
interest. The funds received in the
sale were used to purchase other
investments.
The effect of the reverse repur-
chase agreements was that the city,
borrowed $2 million for use in other
investments.
DELBERT DUNBAR, the account
representative from Icerman, John-
son, and Hoffman who reported on
the firm's audit of the city's Mutual
Investment Fund, said the reverse
repurchase agreements "do not con-
form with state laws regarding in-
vestments."

In its report, the auditing firm sug-
gests "the city should close out these
commitments on or before October 14
(this Friday) and cease any further
transactions in reverse repurchase
agreements."
IF THE CITY decides to retain the
agreements until they mature, thus
avoiding any financial loss, it will
have to do without the $2 million for
three years because the securities do
not mature until 1980.
The reverse repurchase agree-
ments were initiated by former City
Accountant Marc Levin with the
approval of City Controller Lauren
Jedele. Levin was fired las't week for
his role in the city's controversial.
arbitrage investments. Jedele has

announced that he will retire from
the Controller's office after a short
sick leave.
Monday's report was presented as
an audit of the city's arbitrage
investments, which nearly cost the
city $1.4 million last month. Council
members seemed surprised to learn
that city was involved in other
questionably investments.
COUNCILMAN Jamie Kenworthy
said that earlier reports on the arbi-
trage accounts may have had the
effect of "misleading the public."'
"We have no right to screw around
with the taxpayers' money in these
speculative agreements," said Ken-
worthy.
See AUDIT, Page 7

HiSh court urged, t

I

aid affirmative action
WASHINGTON (AP) - The Su- The case involves Bakke's claim
preme Court, preparing to hear argu- that he was denied admission to the
ments in a controversial civil rights university's medical school at Davis
case, was urged by 11 black mem- because he is white. He contends that
bers of Congress yesterday to issue black applicants with lower test
"a strong forthright" endorsement of scores were admitted ahead of him
affirmative action programs to in- because the university followed a
sure jobs and schooling for racial program to select 16 minority appli-
minorities. cants for each entering class of 100.
In an indirect way, the U.S. Civil The California Supreme Court
Rights Commission made the same, upheld Bakke's claim and ruled that
plea as it released a report defending the university system amounted to
such programs as necessary to unconstitutiolnal discrimination. The
compensate minorities and women 11 black House members who com-
for past discrimination. pose the Congressional Black Caucus

Daily Photo by ALAN BILINSKY
Four Arrows festivities
Native American dancers sponsored by Four Arrows perform yesterday in the Union Ballroom. See story, Page 2.
CER TIFICA TION DELA YED:

Sc
901
leN
de
rei

DNA lab failssafety te
By PATTI MONTEMURRI to correct the problem, he added.
Final safety certification of a Medical The MSII lab, and a similar one in the alread rceie appr y ova from Coin-
Fin sfet cetifcatonor a Mdcal Natural Science building, incorporate mittee "C" to try to isolate a human
oence II laboratory, renovated to ac N special fety features to satisfy gene within the confines of the MSII
mmodate'moderaterisk"or"P3" m yplab. According to Wilson, "we're ready
vel recombinant DNA research, was the guidelines that were initiated two to go," and all the researchers need
layed again yesterday when testing years, ago. Critics called for the now is to hear word of the lab's cer-
vealed deficient equipment. regulations to prevent any potentially tification.
veale defiientequipent.h vadA1 ln~4 rr %r~~r~~t',+ iiai

THE CONGRESSIONAL B l a c k
Caucus and the commission took
their positions in advance of oral
arguments today in the Supreme
Court in the case of the regents of the
University of California versus Allan
Bakke. Some civil rights groups say
the high court ruling could be the
most significant in two decades for
the future of race relations in
America.

urged the high court to reverse the
California decision and affirm the-
constitutionality of the university
program.
"THE FUTURE health and wel-
fare of this nation, both domestically
and internationally, dictate that
there must be no judicial retreat on
the constitutional mandate t h a t
equality and freedom must be mean-
See CAUCUS, Page 7.

The lab's "laminar flow hoods," par-
tially glassed-in work tables that cir-
culate air around the experimenter and
the experiment to prevent mutual con-
tamination, were found defective by the
testing firm yesterday.
"THE FLOW isn't quite right," ex-
plained Epidemiology Prof. Francis
Payne, who monitored yesterday's test.
Payne is chairman of Committee "C,"
the watchdog group of faculty scientists
and community representatives en-
trusted with certifying the safety of
recombinant DNA experiments and
facilities on campus.
"It's probably still just a matter of
days" before the lab is declared in
compliance with federal and campus
guidelines for "moderate risk" recom-.
binant DNA research facilities, Pauyne
said. The architects and engineers who
designed the "P3' lab will be called in

nazaraous resultst rom tampering with
DNA, the building block material of
heredity.
RECOMBINANT DNA research in-
volves a laboratory process that tran-
splants DNA strands from the cells of a
complex organism to those of a simpler
organism. Scientists say the research
may lead to cures for many diseases,
but precautions are needed to ensure
that altered genetic material does not
escape from the lab.
Five recombinant DNA research ex-
periments are currently being conduc-
ted on campus. But' the experiments
require no special laboratory facilities
other than the safety precautions
followed in all microbiology research.
The certification of the "P3" lab will
herald the first time "moderate risk"
research will be performed here. Two
Medical School professors, Roy Sch-
mickel and Golder Wilson, have

America,

$10,000 and what Ruth will do with it

By DAN OBERDORFER
Sunday morning, Ruth Miller
drove to the store to buy puppy
food.
When she returned home a few
minutes later, she was $10,000
richer.
Ruth, a University junior, had
overcome one to 120,000 odds to
win the grand prize in the "three
of a kind" match game in the
state lottery.
"I COULDN'T believe it at fir-
st. I had to stare at it for ten min-
utes before it sank in," she bub-
bled over the phone.
"I called my parents and they
didn't believe it either. They
called back two days later to see
if I was still alive."
Ruth had just joined a select
group of fortunate folk who have
won at games less rational than
the game of life.
"PEOPLE WERE funny when
I first won it. They wanted to
touch me, just to see if I was
real," she remarked.
"When I came in to work at the
Second Chance that night, every-

and that I bought it, really flipped
me out," she said.
"I think I'm going to take a trip
to Hawaii. And I'm going to pay
for my parents and my boyfriend
Jerry's parents to come to Ann

Arbor the weekend of November
5th. My parents went to school at
Northwestern and they'd like to
see the game.
"That only takes care of part of
it. I might buy a car or something

with the rest of it,"- she calcula-
ted. "One idea I have is to finance
a graduate research project
when I finish here."
Each lottery ticket has six rub-
away dots. Any three of a kind or
two of a kind, coupled with a
joker, wins. Only three aces or an
ace/joker combination snags the
$10,000 grand prize. Ruth's ticket
was marked with three lovely
aces.
"I spent the change from the
puppy food on three tickets - one
for myself and two for Jerry's
relatives," she said. "Everybody
in the town is crazy about the lot-
tery and I thought I'd give it a try
myself.
"I WAS SITTING in A chair
when I rubbed the dots off.
Jerry's mother was looking over
my shoulder. When I saw the
three aces I stared at it in dis-
belief," she recounted. "Jerry's
mother grabbed it out of my hand
and ran out of the house to show
Jerry and his father, who were
building a dog house in the back-
yard."
Ruth made, a $3 investment on

State House panel
okays college grants'

By DIANE ROBINSON
Legislation that would bolster state
scholarship and tuition grant pro-
grams by $1.3 million has been
unanimously approved by the Michi-

THE PROPOSED bill is intended
to offset the effects of tuition in-
creases which took effect in most
state-supported colleges and univer-
sities this fall.


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