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Vol LXXXVIII, No. 57
Ann Arbor, Michigan-Saturday,I
November 12, 1977
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Interior nominee oustec
over campaign lawsuit
WASHINGTON (AP) - President
Carter's nomination of Robert Men-
delsohn to a high Interior Depart-
ment post was withdrawn yesterday
after a California agency announced
plans to sue him in connection with
an alleged scheme to launder cam-
paign funds.
Interior Secretary Cecil Andrus
announced the withdrawal of the
nomination and said it was at
Mendelsohn's request.
AT THE WHITE House, assistant
press secretary Claudia Townsend
said the withdr'awal would be accept-
ed, but that the White House had no
other comment.
The California Fair Political Prac-
tices Commission said it planned ;to
file suit against Mendelsohn on
lMonday alleging "widespread viola-
tions of California's campaign dis-
closure laws." -
Andrus said he feels certain Men-,
delsohn would be exonerated and he
would resubmit Mendelsohn's name
at that time.
IN A STATEMENT issued through
the Interior Department, Mendel-
sohn said the action by the California
agency was : "wrong and totally
unjust."
"I intend to fight it with every fiber
of my being and to seek the justice
which orily clear exoneration in court
of law can provide."
Mendelsohn was nominated to be
undersecretary of Interior for policy,
budget and administration. His nom-
ination has been controversial since
it was submitted.
MENDELSOHN called the Califor-
nia commission's action "a total
cop-out" and said it was a "political-
ly appointed" commission.
He said he voluntarily took a lie
tector examination and that it s
ported his contention that he r
done nothing wrong.
"The results of that test were mz
available to the commission,"
said.
MENDELSOHN is accused of1
ing negligent in supervising the
porting activities of his 1974 ca
paign committee. He ran unsucce
See CARTER, Page 10
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i- Daily Photo by BRAD BENJAMIN
Ronstadt rocks 'em
at- Linda Ronstadt rocked an exuberant Crisler crowd last night in a triumphant return performance. Ronstadt took
nd : crowd through a series of her hits, including "Desperado" and "Faithless Love."
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Print Board won't end
S. Africa investments
By BRIANBLANCHARD
The Board of Student Publications
rejected a motion by its two under-
graduate members Thursday snight
to ask the Regents to withdraw Uni-
versity funds from corporations with
holdings in South Africa.
The Board has money in the Uni-
versity's general investment pool,
some of which is invested in corpora-
tions with South African ties. The
Regents' bylaws do not allow the
Board to pull its holdings from the
University pool.
ON OCTOBER 25, the Michig
Student Assembly (MSA), un
stricted by the Regents, voted
remove its $4,000 from the inve
ment pool. At that time MSA treasu
er Rick Devore found six instances
direct involvement in compan
dealing in South Africa. MSA urg
the Board to divest itself of stocks
corporations with South African bu
ness.
The ten-member Board was cre
ed by the Regents to control a
See PUBLICATIONS, Page 10
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Carter to seek
tax cuts,
Treasury Secretary says
WASHINGTON (AP) - President
Carter will propose tax cuts for in-
dividuals and business next year, but
probably not the comprehensive tax
reform program he promised during
his campaign, Treasury Secretary,
Michael Blumenthal predicted yes-
terday.
He said Carter will decide within a
few weeks on the tax bill he will send
to Congress early next year. But
Blumenthal said he hopes it will not
include "long and complicated" tax
changes because they would have an
unsettling effect on the economy.
"MY ADVICE is that tax action
next year be relatively simple so that
we get. . . confidence built within
the business and financial commun-
ity and do something to provide tax
relief for individuals and incentives
for business," Blumenthal said.
"That should be the first priority,;
and I think it will be," he added.
While Blumenthal didn't mention}
tax cut figures during his appear-
ance before the Senate Banking
Committee, he has said previously
the administration is considering tax
reductions of between $15 billion and
$20 billion next year for business and
individuals.
HE DID SAY he though a start
could be made on tax reform.
However, if the administration de-
cides to keep the tax bill simple next
year, it probably would not include
Carter's previous pledges to elimin-
ate tax preferences on capital gains
and deductions for business lunches.
The plan to reduce the double
taxation of corporate dividends prob-
ably also would be eliminated.
Carter said at his news conference
Thursday that he had not yet made
any final decisions on what to include
in the tax bill.
In addition to the retreat on
comprehensive tax reform, Blumen-
thal also disclosed two other appar-
ent changes in administration policy.
IN ANSWER to a question, he said
the administration does' not put the
fight against unemployment ahead of
combating inflation, an apparent
reversal of Carter's campaign pledge
that creating jobs would be the first
priority of his administration.
"We can't dealwith one without the
other . . They are of equal import-
ance," Blumenthal said.
But when the treasury secretary
said that the administration has no
basic differences with Chairman
Arthur Burns of the Federal Reserve
Board, it was almost more than
committee Chairman William Prox-
mire (D-Wis.), could stand.
Proxmire said he was "perplexed,
puzzled and disappointed" because
Ozone ,House won't
buy $4,000 runaway
information service
Blumenthal seemed to be "endorsing
the Fed's restrictive money supply."
But although he pressed Blumen-
thal to admit some serious disagree-
ment with Burns, the secretary
acknowledged only that there have
been differences on tactics and that
those were not serious.
"As for the general trendl of mone-
tary policy, I'm satisfied at this point
he has been about right, in a very
difficult situation," Blumenthal said.
'U', _HOA
agree to
mediatioii
By SUE WARNER
Negotiators for the University and
the House Officers Association
(HOA) agreed yesterday to call in a
mediator to aid in stalled contract
negotiations.
HOA officials, who represent some
600 interns and residents responsible
for patient care at University Hospi-
See 'U', Page 10
64"
Daily Photo by JOHN KNOX
THAMI MHLAMBISO, African National representative to the U.N. yesterday
urged students to take up the fight against University investments in corpora-
tions dealing with South Africa.
f
African lead1erhits
'U' for investments
By DAN OBERDORFER
The University, by virtue of its in-
volvement in corporations with ties to
South Africa, is acting without respect
for human life. That and other ac-.
cusations were fired by Thami Mhlam-
biso, African National Congress
representative to the U.N. at the final
day of the week long South Africa
teach-in yesterday.
"Those corporations that have in-
vestments in South Africa (and in
which the University has invested)
have led to the viability of the South
African government," Mhlambiso
charged.
OF THE UNIVERSITY'S $55 million
investment portfolio, upwards of $40
million in corporations which have ties
to South Africa, notably Standard Oil of
California and U.S. Steel.
"It is true that the struggle must
come from the inside," Mhlambiso
said, "but it is also true that you must
lend us your support to undermine the
confidence of that (the white ruling)
Mhlambiso charged that racism is
behind the support, however tacit,
which Western powers afford the South
African government.
"One wonders if we were the
minority and Vorster and his kind were
the oppressed majority under our rule,
what the rest of the world would have
done by now," he said.
HE ALSO CHIDED the Carter ad-
See AFRICAN, Page 10
By MITCH CANTOR
Employes of Ozone House, a youth
counseling center, decided Thursday
night not to pay nearly $4,000 a year
for use of a state information relay
system on runaway youths.
The Uniform Reporting System
(URS), rented through the Michigan
Department of SocialServices, is
used freely by nine of the ten centers
in the Michigan Coalition of Run-
away Services (MCRS).
Ozone House, however, lost this
privilege when it lost its contract
with the Michigan Department of
Social Services last year.
That rift was a product of Ozone
House's refusal to obey a state
harboring law which forbids youth
centers to house runaways without
notifying their parents.
OZONE HOUSE staff members
refused- to comment on the contro-
versial subject, which has been de-
bated for the past two months.
Vondie Moore, project coordinator
,for MCRS, said she would like to see
Ozone House get use of the URS.
"If they don't participate I think
it's a great loss," she said yesterday.
But, she added, "it was agreed by our
Board of Directors that Ozone House
should deal with their problem (fund-
ing for URS)."
MOORE ALSO explained the neu-
trality of MCRS concerning Ozone
House's practice of illegally housing
runaways.
"The coalition is an organization of
organizations. We're all in the busi-
ness to help kids. All of our facilities
work in different ways, and we
respect each other's individualities."
Robert Lnebke, director of pro-
gram development associates for the
URS, said he hopesdOzone House can
find alternate funds for use of the
data system.
"I feel it's a very unfortunate situ-
ation because Ozone House has put a
lot of energy into developing the sys-
tem, and it's a shame that they can't
reap the benefits," he said yesterday
afternoon.
Though refusal to obey the youth
harboring law has cost them free use
of the URS as well as $26,000 worth of
No more camp-outs
for 11' hoop tickets
Surprise! Seniors don't have to
camp out for basketball tickets until
Monday morning. The Athletic Tick-
et-Office last night set check-in
times for those persons who were
waiting patiently in the freezing
Those who fail to check' in get to
start all over again - at the end of
the line.
Each person in line can represent
four people, provided they have that
many ticket receipts and ID cards
,
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