Th e D ichigan Daily Vol. LXXXiX, No. 18-S
Friday, May 25, 1979
Ann Arbor, Michigan Ten Cents
House rejects decontrol, wants oil
WASHINGTON (AP)-President Carter's plan to prices and enrich producers while doing little to
remove price controls from domestic oil was over- alleviate shortages.
whelmingly repudiated by House Democrats yester- The vote, formalizing a voice vote taken the day
day while Republicans demanded a better accounting before, has no legal force. But it clearly added momen-
of current fuel shortages. tum to the drive to block the president's plan to remove
The developments came amid what appears to be price controls from oil.
rising congressional hostility toward the oil in- House Speaker Thomas O'Neill openly broke with the
dustry-not just from liberals but from big oil's president and supported the resolution. But he later
traditional allies in both the House and Senate. told reporters that despite yesterday's vote, there's
Expressing frustration over rising prices and tight "no chance" that Carter will change his mind and
supplies, House Democrats approved, 138-69, a leave price controls on oil.
resolution repudiating Carter's plan to begin lifting AT THE WHITE House, Carter press secretary Jody
price controls on domestic oil June 1. Powell said the Democrats' action is "clearly not in the
BACKERS OF THE non-binding resolution claimed best interests of our country" and indicates a failure to
decontrol would result in even higher gasoline and oil face up to tough problems.
"It is a politically attractive non-answer to our
energy problems," Powell said. "It will not make them
better. It will make them worse."
He predicted the full House would act in a "more
responsible" manner and uphold Carter's plan to lift
THE OIL industry also came under attack from
Republicans and a leading oil state Democrat-usually
among the industry's firmest allies on Capitol Hill.
Houseepublican leaders introduced a resolution
that, if passed by the House, would direct Carter to
See HOUSE, Page 2
U-2 flight clearance
decision may affect
SALT II treaty
WASHINGTON (AP) - With the
U.S.-Soviet strategic arms treaty-
r signing summit rapidly approaching,
the Carter administration is immersed
in delicate talks with Turkey aimed at
winning clearance for U-2 spy flights
over that country.
The diplomatic maneuvering will
have major repercussions on the suc-
cess of next month's summit meeting
and the fate of the SALT II treaty. The
flights over Turkey by American spy
planes would help U.S. intelligence
make up for the loss of two Iranian
stations which monitored Soviet missile
The administration's success may be
critical in the Senate debate over
ratification of the pact. Influential
critics like Sen. John Glenn (D-Ohio),
AP Photo are saying the treaty will not be
Richard Carr, one of four men including Bert Lance, who were indicted on a verifiable unless the administration
33-count bank conspiracy, leaves federal court in Atlanta yesterday after makes up for the loss of the Iranian
pleading innocent to charges of conspiracy and misuse of bank funds. See monitoring posts.
story, Page 3. INFORMED SOURCES, declining to
OFFICIAL CLAIMS DEALERS TAKE ADVANTAGE OF GAS FEARS:
Stations cash in on price increases
WASHINGTON (AP) - Service "I don't know where he is getting senators that the council has asked for
station dealers appear to be "taking those things," Harper said in a price data from 60 major oil companies
advantage" of fears of gasoline shor- telephone interview. "Everyone has and expects its analysis of wholesale
tages by rapidly increasing pump gone up to the maximum (government) refinery prices to be complete in about
prices, a Carter administration official price ceiling ... But inflation has eaten two weeks.
charged yesterday.-up50 per centof the profit." AFTER THE HEARING, Bosworth
Barry Bosworth, director of the Retail gasoline prices nationwide told reporters that the complexity of
president's Council on Wage and Price currently average about 85 cents per Energy Department rules on gasoline
Stability, told a Senate subcommittee gallon, according to the authorative prices made it difficult for both the
hearing that "retail (gasoline) prices Lundberg Letter. The Los Angeles- government and. gasoline dealers to
have increased far more than would be based reporting service, which surveys determine whether the rules were being
expected from crude oil increases." some 16,700 service stations for its data, violated.
BORWORTH'S CLAIM was said the average price at the end of 1978 He said, however, that "the average
challenged by Risque Harper, was 66 cents. gasoline station is not in compliance
executive director of the National AT LEAST 5 cents represents higher with the voluntary (price) standards."
Council of Petroleum Retailers. crude oil prices charged since the first The standards, announced last fall by
of the year by the Organization of President Carter, call for price in-
BULLETIN Petroleum Exporting Countries, creases of no more than half a percen-
BURLINGAME, Calif. (AP)- energy experts say. An additional 5 tage pointabove 1976-77 increases.
Union mechanics have ratified a cents to 8 cents is the result of a gover- The remarks came as a Senate Ap-
new contract with United Airlines by nment policy that allows refiners to propriations subcommittee considiered
a 3-1 margin and the 55-day strike pass on more of the cost of producing the council's budget request for 1980.
against the nation's largest gasoline. The council has asked for $8.5 million
domestic air line is over, the union The rest, Bosworth suggests, is to cover 253 staff positions. A House
announced yesterday. United says it related to higher mark ups by service subcommittee earlier voted to cut the
will resume partial service Monday. stations. , staff by 33 persons and reduce the ap-
See story, Page5. The anti-inflation expert also told the propriation by $1 million.
be identified publicly, say that
sometime between now and mid-June,
when the summit is scheduled, the
United States hopes to gain tacit Soviet
acquiescence for the flights.
See U-2, Page 2
By JULIE ENGEBRECHT
A committee that reviewed the
University's policy regarding invest-
ment in corporations which do business
in South Africa held its final meeting
yesterday, and approved the draft of a
report to be sent to the Regents.
The Senate Assembly Advisory
Committee on Financial Affairs
(SAACFA) report will probably not be
ready in time for the June 14-15 Regents
meeting, according to James
Brinkerhoff, University vice-president
and chief financial officer. He would
not, however, rule out the possibility
that it would be ready for the agenda.
STUDENT SUPPORTERS of
University divestment said they would
have preferred the Regents consider
the report during the fall, when more
students will be in Ann Arbor.
The report recommends divestment
from companies that do not annually
submit a completed Sullivan Principles
summary report or equivalent, or ap-
prove new capital appropriations in
South Africa unless deemed necessary
for corporate implementation of the
Sullivan Principles or their equivalent.
The report also includes provisions
allowing for the termination of business
dealings with banks that make loans to
the South African government or
divestment of fond holdings subject to
See SAAC FA, Page 2