Th e D ichigan Daily Vol. LXXXiX, No. 18-S Friday, May 25, 1979 Sixteen Pages 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. supply account "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 price controls. 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 tests 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 SAA CFA finalizes divestment report 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 government-owned corporations, divestment of fond holdings subject to See SAAC FA, Page 2 S t i i c f t f _