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January 13, 1976 - Image 2

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Michigan Daily, 1976-01-13

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Page Two
Cheating criticized
IN VARIOUS instances, ac- -no credit for the exam in
cording to the committee report question; and
punishments included: -four months suspension.
-a letter of reprimand; One professor called the com-
-a letter of reprimand and a mittees supposedly light disci
$75 fine; plinary actions "scandalous,"
- --------~ while another faculty memberj
termed the committee's actions
$ 3 ~'""a farce."
$13per day Judiciary Committee member
FLATE RATE Mary Crichton, of the German
Department, said that some of
the accusations were "justified"
NO Mileage but she did not elaborate.1
OTHER committee members
$89.50 could not be reached or would1
not comment on the opinions,
WEEKLY voiced at yesterday's faculty
CHEVETE, PNTOmeeting.
CHEVETTE, PINTO, English Professor Eric Rab-
VEGA kin said he did not want the
That's Why We're Called report to be publicized becausei
the committee's lenient attitudei
ECONO -CA R might encourage dishonest prac- j
438 W. HURON tices.
ANN ARBOR Associate Dean of LSA Char-.
les Morris pointed out that the1
663-2033 student members of the com-
mittee were "not a factor in,
leniency."
El

I H-t MICIG(AN LDAILY

i

I uesday, January 13, 19 10

Sharp-eyed salesmen swindle

sheep'

(Continued from Page 1)
buys it for $3,300 cash as an in-
vestment for his upcoming re-
tirement.
NASSBELIEVES the person'
who signed the contract will
send him - the contract's now
owner - a check for $78.56 each
month for several years, as
specified in the contract. He is
puzzled, then outraged, when
no payments come. Had he
been present when the contract
was signed, he would under-
stand.
Nass finally complained to the
Arizona attorney general's of-
fice and, with Peterson, testi-
fied in a trial against former
Great Southwest officers. But
he said he. never received a
payment on the contract he
bought, nor had he seen a cent
of his $3,300 investment.
North Platte, Neb., October,

1971. Gordon Johnson answers
his telephone and gets a friend
ly invitation to a free steak
dinner at a local restaurant.
"WE'D LIKE to tell you and
some of the other nice folks in
North Platte about the wonder-
ful things that are happening
in Arizona," says the voice
"We're going to give you the
opportunity to get in on the
ground floor on some choice
land. No obligation, of course.'
Johnson, goes, gets a free
steak and a sales pitch of in-
credible intensity.
"Their salesmen wouldn't let
me say no," he recalls. "They
told me there was a land boom
going on in Arizona and prices
were skyrocketing. They had
films and slides and maps and
posters. They showed m
charts and figures and govern-
ment reports. They showed me
how, if I bought a lot, I could
sell it for twice as much in
two years. And if I didn't like
it, I could have all my money
back so there was no way I
could like and only a fool would
refuse a deal like that."
"YOU KNOW," he says
"they were, nice people. And i
just sounded too good to pass
up."
Johnson buys lot No. 448 for

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I

JANUARY 14

$250 down and $87 a month for
for years.
Thirty months and $2,860 in
payments later, Johnson, stiff
with arthritis and readyto re-
tire, flies to Arizona to inspect
his-property. He finds 'it, with
some difficulty, in a barren
wasteland 100 miles north of
Phoenix - at the bottom of the
Gila River.
MONTEZUMA Development
Corp., which sold Johnson Lot
No. 448, according to a com-
plaint filed with the Arizona
attorney general's office, is
bankrupt.
Gordon Johnson and Virgil
Ness are victims of what many
desribe as the two most com-
mon land frauds being perpe-
trated on. the American public
today.
Complaints filed with state
consumer agencies show that
the victims of these frauds
come from many social and
economic levels - the wealthy,
the middle class and the noor.
But state and federal officials
say they do not know the over-
all cost of the swindles becalse
most of the victims swallow
their losses and say nothing.
"THEY'RE TOO embarras-
s

sed to complain," says Conrad paying after $600. I still have phone book. This is the dinner+
- Goodkin, Wisconsin deputy the contract. I save it as a re- invitation. You can expect about
commissioner of securities. minder. .. I won't be so fool- a two per cent return. Then hei
"The ones you do get here are ish again." dispatches a crew of salesmen1
pretty much the tip of the ice-* - maybe a dozen - for the
, berg." There are a lot of versions of dinner.
In the state of Washington, the land hustle. Let James "We would start, with films,,
- for example, officials of the Cornwall tell his. He was one slides, posters and an openingJ
. government's Real Estate Di- of its more successful practi- talk. This is the big show. The
vision (RED), say 20 out-of- tioners, earning $12,000 a week Arizona land story, America1
state developers registered to at one point, he says. Cornwall, and apple pie.
sell land in Washington are 39, a former divinity student DURING DINNER, one. clos-1
" 'very dubious" in terms of the and used car salesman, was er salesman sits with two cou- .
value of the land they're sell- president of Great Southwest ples. There's only small talk, :
ing. The 20 have registered 51,- Land and Cattle Co. from ' polite conversation. The closer
- 592 lots. Total selling price: January, 1971,. until the com- feels them out, finds out whe-
t $588.4 million. pany dissolved in April, 1972. ther the husband or wife con-
"And this is only a drop in trols the purse strings. He picks
the bucket . . . only the ones RECENTLY, HE SAID, "I his best shot - the couple he'
we have a record of since we have with the help of God re- feels will most likely sign a1
come into existence in Janu- habilitated nystelf to the point contract that night.
ary, 1974," says Ross Baker, a that I am . . . a part of the "After dinner he leaves one
RED investigator. 'answer and not a part of the couple to another closer, takes
- ANGUS McLEOD, chief of problem." his best shot aside. and starts
the Nevada Real Estate Divi- Cornwall was indicted on 66 to work them. He always starts
Itsihne sas 3 toE4stegDi- counts of fraud in connection with the investment story, be-
sign, says 35 to 40 firms regis~with the sales of securities in- cause that's what's going to
otered in Nevada sell very re- volving Great Southwest Land' make his sale. No matter what
e mote land with not other deand Cattle Co. He pleaded guil- anybody says they want land
velopment or population growth ty to three counts -and 63 were for, investment is the' biggest'
expected for many years-if at dropped. Maricopa County At- appeal. Everybody wants to
I all'" torney Moise Berger promised' make some money. Every-'
"It's perfectly legal," says Cornwall probation in return body's greedy.
McLeod. "The people are just for testimony against Ned War- The closer hits them with
tpayinga lot more than the land ren Sr., a Phoenix businessman everything. He pulls out folders
.is worth." charged with bribing a former of charts and graphs. He shows
According to the U. S. Office Arizona real estate commis- them how the price of land is
of Interstate Land Sales Regis- sioner in connection with Great skyrocketing, how lots 'he sold'
tration, 42 states have laws Southwest's operations. last year have increased 50 per
regulating sales of subdivided cent in value already. This is
land. Typical is Utah's two- CORNWALL and the state eir big chance.
year-old Uniform Land Sales claimed that Warren was the, "YOU WANT A retirement
Practices Act, requiring full mastermind behind G r e a t home, a vacation home, fine, he
disclosure of all legal and phy- Southwest, and that Cornwall tells them. But are you gonna
sical aspects of the land being was merely a puppet. But the complain if the lot doubles in
7 sold and prohibiting promotion- Arizona charge against Warren vpl in two years? d
al "tactics that go beyond the was dropped for lack of evi- "He gives them alpresenta-
t bounds of fairness." dence and Cornwall 'didn't tes- tion that they're not equipped
YET, SAYS Robert.Thurman, tify. He recently was sentenc- to argue with. He overwhelms
counsel for the Utah RED, not ed to 5 to 10 years in state pri- them. They don't understand I
a single criminal action has son. because it's all doubletalk, but
been filed under the act in the "The sales operation is pret- they don't ask. If they do, he's
year he's been with the RED, a ty standardized," said Corn- got an answer for everything.
situation not uncommon in well in an interview in Phoenix He just grinds them into the
states having such laws. before he went to jail. "The de- ground until he burns 'em -!
"Most buyers are very coop- veloper buys a large parcel of gets a down payment and a I
erative - with the developer," land with a very small down signed contract."
says Robert Blakey, deputy I payment on a lot-release basis. In out-of-state land sales, fed-.
Arizona attorney general for That means he pays off each eral law requires that the buy-
consumer frauds. lot as he resells it. His financial er get an inspection privilege,
"Some of the people who buy stake in minimal. He takes no the right to see and Rnnrove the
this land are unexcelled in their stake in minimal. He takes no land within a specified period
stupidity. They don'h read, they personal risk. before the sale is final. If he
just sign. Guy shoves a paper "He gets some broken down feels the land is not as repre-
under their nose, they sign." grading equipment, roughs insented in the contract, he gets
TELEPHONE interviews with some roads, stakes out his lots a refund.
land purchasers who have filed and that's his inventory. This isi
complaints show a common cheap, largely worthless land., "THAT'S WHAT we tell1
strain. The approach, the patch, These 80x100 lots have an ac- them," says Cornwall, "but it's1
the deception, the awakening tual value of maybe $50. He's bull. If the sheep (the buyer),
are, with little variations, iden- going to sell them for $3,000 to would read his contract he
tical. And' always, the same $5.o00. would see the only way he's
'tag line: "But they seemed like "He picks a target city and going to get a refund is if he
such nice people . . sets up a boiler room in a .ho. can prove misrepresentation.
Ms. Bernhard Benn of West: tel - 8 to 10 girls with tele- And how's he gonna do that?i
Allis, Wis., who bought a lot phones - and they call an ad- Everything we promised him+
at River Ranch 'Acres, Fla., dress list or just go through the - the trees, the lakes, the
says: "That guy was talking
so fast, he had an answer for
everything. He just' kept sho-
payments were too high. He cut
them in half. I said I was afraid
to buy without seeing. He said (Continued from Page 1) long delayed is evidence that
we'd get a money-back guaran- LAST WEEK'S election is the the leadership wishes to per-t
tee. He said they were going- culmination of an often bitter petuate itself.i
to put in roads and utilities and struggle by the CDU against Criticism of union operations:
a big, deluxe recreation com- what they see as a self-serving is widespread. The present con-
nlex The didn't do anythin local hierarchy and unwarrant- tract with the University is re-t
The They e anythng. ed interference by the United garded as grossly inadequate byu
-land is worthless. I stoppedAuto Workers regional organiza- many union members.

roads, the utilities, the shop-
ping centers, the golf course-
it was all verbal. Nothing in
writing.
"When they come down to in-
spect the land they're met on
the site by another salesman.
He's called a reloader. He's a
specialist. and he's very good at
his job -- which is not only to
convince the sheep to keep the
lot, but to sell him one or two
more. It's hard to believe, but
the reload rate, is fantastic.
Most people who start out
screaming for a refund wind up
taking a second lot."
"THEN YOU START build-
ing the house for them. You
build them a dream, a com-
plete package, and by the time
you're done their heads are in
the clouds. They're seeing
things on this junk land that
were never there and never will
be there. They're totally snow-
ed, totally caught up in this
dream. Aud, believe it or not,
this is not hard to accomplish.
There's something magical
about land. Everyone of us
would like to own some. It's dif-
ferent from every other com-
modity. 'There's a permanence
about land, a mystique, and it
all works for the seller."
* * *
The traffic in bad mortgages
is a major problem in some
states.
Last spring, Florida's state
controller, Gerald Lewis, an-
nounced an investigation into a
scheme that has robbed as
many as 80,000 investors of up
to $1 billion. Lewis says. the
scheme involved the sale of
high interest notes secured by
fike first mortgages on lots in
Florida land developments. He
says at' least 57 corporations
are involved.
THE STATE is suing to get at
least some money back.
"The typical victim is not the
well-heeled, sophisticated in-
vestor.". says Lewis. "He's the
middle-class retiree who stands
to lose everything he's worked
a lifetime for."
Ike Elivabeth Butler, a 67-
year-old widow from Hialeah,
Fla., whose savings account
was wined ont by phrchase of
a worthless contract.
"I SAW THIS ad in the pa-
per that said you could get 14
per cent on your money," she
recalls. "I called them up and
this man came out and told me
I could make $3,900 on ny
$2,500. He said I couldn't lose
because I .would get a deed to
property in a development they
owned. He sounded so convinc-
ing."
l election
unexpectedly sinificant effect,
the new leadership should mark-
edly change union policies.
The CDU will press fdt fur-
ther changes in the local bylaws
to create more direct democ-
racy in the union's government.
Connecticut was the first
state to have' a written con-
stitution.

7:30 P.M.

ROOM 5

University of Michigan Student Health Service
201 Fletcher-Ann Arbor

YOU PLAN ON QUITTING SOMEDAY,
WHY NOT DO IT NOW?

SPONSORED BY:
MichiOan LungRAssociation
University of Michigan
Student Health Service

L

U

UDC
Rthisv eek

Bridge-Chess-
Backgammon
(coffee & tea),
8-11 p.m.
Thursday, Jan. 15
H I LLEL
1427 Hill St.

I

i

r d

h .-

FUTURE WORLDS IS BACK!!
GEOGRAPHY 303; PROFESSORS: Karen DeCrow, Rollo May, Jon Kozol, David
3 CREDITS Brower, Jerry O'Neill, Nicholas Johnson, Dick Gregory, Susan
CREDITSBrownmiller. Julian Bond
LIMITED ENROLLMENT; FEW SPACES STILL OPEN
January 27th-Karen DeCrow; President of National Organization of Women (NOW)
UAC MUSKET
MASS MEETING For "HELLO DOLLY"
WEDNESDAY, JAN. 14, 1976--7:30 P.M., 2ND FLOOR, MICHIGAN UNION
AUDITIONS-January 15-17, 1976
MEDIATRICS presents
BUTCH CASSIDY and the SUNDANCE KID
ROBERT REDFORD, PAUL NEWMAN
JAN. 16, 17 TIME: 7:30 P.M., 9:30 P.M.
NATURAL SCIENCE AUD. ADMISSION: $1.25
All tickets ao on sale an hour before the first show
THE COLLABORATIVE ... UAC-Michigan Union
Art Classes
LEARN THECBASICS IN BATIK. DRAWING, ETHNIC CLOTHING. JEWELRY, LEADED
GLASS, MACRAME, PA INT ING, PHOTOGRAPHY"., POETRY, SCULPTURE, SI LKSCREEN,
SOFT SCULPTURE OR WEAVING.
$20. for 8 classes. Classes start January 26 in the Michigan Union. Call 764-3234 (Union
Gallerv) or 668-7884 (UAC Arts and Crafts Guild) for further information.
UAC Etc. presents
THE NATIONAL MARIONETTE THEATRE
JAN. 28 AT i P.M. ADMISSION: ADULTS $2.50
JAN. 29 AT 8 P.M. CIDE 12
MENDELSSOHN THEATRE CHILDREN $1.25
Tickets are on sale at UAC Ticket Central (lobby of Michigan Union)
and at the door.
THOT PRODUCTIONS
DEADLINE: For 2nd issue of THESEWEEKS art smaqazine is Jan. 21, 1976. ART, GRAPH-
ICS, WRITING, PHOTOGRAPHY .. . For more information call 763-1107
ECLIPSE JAZZ presents Les McMann
WED., JAN. 21-8 Shows: 8:00 & 10:30 p.m.
also appearing: MIXED BAG
Tickets: Mich. Union, Discount records and The Blind Pigi
COMING-CAROLE KING-Jan. 26, 27
FOR MORE INFO CALL 763-1107

r
i

FREE

E!

.

tic

on, with which the clericals

THE RUDOLF STEINER INSTITUTE OF union is affiliated.
THE GREAT LAKES AREA The UAW's often heavy
announces a course in the art of ed "guidance' of the 1
CHORAL AND INDIVIDUAL SPEECH affairs has caused consid
resentment within the u
taught by GERALD JUHR ranks. The seeming acquie
according to the methods inaugurated by R. Steiner of the local leadership t
The course aims at developing awareness, technique and ofWthenloleas
creative expression in regards to the artistic and spiritual UAW involvement as
potential of human speech. them subject to some o
PLACE: THE RUDOLF STEINER HOUSE-1923 Geddes Ave. resentment.
TIME: SATURDAYS, 10:00-11:30 A.M. 9 To the CDU, the fact th
Introductory lesson: Saturday, Jan. 17--FREE same people have continu
Course of ten lessons begins Saturday, Jan. 24 Dositions of power sinc
COURSE FEE: $40.00 STUDENTS: $25.00 local was organized over a
ago and elections have .be
~ r
Counse ling, Servi ces.
Counseling Services provides individual, couples, and
group counseling free of charge for enrolled students.
TO MAKE AN APPOINTMENT:
SECOND FLOOR, HEALTH SERVICES--764-8313
8-5 MONDAY thru FRIDAY
WALK-IN SERVICE:
THIRD FLOOR, MICHIGAN UNION
Noon-5 MONDAY thru FRIDAY
MARRIAGE AND FAMILY DIVISION: North Campus
Commons-764-8339
PEER COUNSELING, INFORMATION, AND REFERRAL:
DIAL 76-GUIDE-24 hours per day
MINORITY PEER COUNSELING AND INFORMATION:
SOUJTHOLJADI ORRY- 1 nm.-10 n m Mondav

-hand-
local's
erable
nion's
esence
o this
made
f this
at the
ued in
e the
year
een so

THE leadership has "walked
over everyone's rights" claims
the outspoken Weeks, now ap-
parently the local president. She'
promises a far more militant
stand against the University.
Upcoming negotiations with
the University will include de-
mands for a substantial across
the board wage increase, a cost
of living clause and longevity
pay.
The final outcome of the elec-
tion is still somewhat unclear,
although a recount should not
affect the results too drastically.
THE NEW officers will be in-
stalled at the next membership'
meeting later this month. Un-
less a recount should have an

1'IF Mlt lEIG4N DAWlY
Volume LXXXVI, No. 88
Tuesday, January 13, 1976
is edited and managed by students
at the University of Michigan. News
tonne 764-0562. Second clas postage
paid it Ann Arbor, Michigan 48106.
Published d a il y Tuesday through
Sunday morning during the Univer-
sity year at 420 Maynard Street, Ann
Arbor, Michigan 48109. Subseiption
rates: $12 Sept. thru April (2 semes-
ters); $13 by mail outside Ann Ar-
bor
Summer session published Tie-
fisy thr~ugh Saturday morning.
Subscription rates: $6.50 in Ann
Arbor: $7.50 by mail outside An
Arbor.

MODIFY YOUR
UNDESIRABLE BEHAVIORS
IF YOU WANT TO:
1) Lose Weight
2) Stop Cigarette Smoking
3) Increase Study Skills
4) Stop Biting Finger Nails'
5) Exercise More Frequently
6) Meet More People
7) Complete Your Dissertation
8) Change Other Minor
Maladaptive Behaviors
Students in Psychology 414 (Advanced
Laboratory in Behavior Modification in
Cooperation with the Institute of Behavior
Chane, will work with you in chanoing

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