T e M ic ig n Dl Vol. LXXXIX, No27-
Twelve Pages
Ann Arbor, Michigan Ten Cents
Food priee drop
biggest in 3 years;
inflation eases
WASHINGTON (AP)-The biggest decline in wholesale food prices in more
than three years in May gave hope to consumers yesterday that the torrid pace of
inflation is easing, especially at the supermarket counter.
The government said overall wholesale prices increased just 0.4 per cent in
May, down sharply from the first four months of 1979 and the smallest monthly in-
crease since August. Prices had increaed 0.9 per cent in April.
IN ANOTHER encouraging report, the government said the nation's
businesses plan to increase investment spending by nearly 13 per cent this year, or
4.5 per cent after discounting for inflation.
"It enhances our confidence that we'll be able to avoid a recession," said
William Cox, the Commerce Department's deputy chief economist.
r President Carter, in a speech before the newly formed United Foor and Com-
mercial Workers International Union, vowed once more that he will not resort to
mandatory wage and price controls in the battle against inflation.
Daily Photo by LISA KLAUSNEF
THESE DANCERS ARE part of the Greek festival, Ya'ssoo, a fund-raiser for
St. Nicholas Greek Orthodox Church, 414 N. Main St. All the dancing, food, and
drink will be available at the festival which lasts through today and tomorrow.
A 2 Greeks celebrate
With food and dance
By PATRICIA HAGEN
Regardless of each individual's true
nationality, everyone attending the
Greek festival at the Saint Nicholas
Greek Orthodox Church last night felt
Greek.
Bouzouki music, folk dancing, and
tables full of carefully made foods kept
the many Greek and non-Greek par-
tiers entertained. -
THE ANNUAL three-day festival is a
"group effort" by the church's
parishioners to raise money for the
church building fund, according to Ann
Hulss, who was busy yesterday selling
raffle tickets.
According to some of the
parishioners, the party yesterday was
just the beginning of the celebration.
They said eight years of past experien-
ce has taught them that the crowds on
Friday and Saturday will be even
larger.
According to Greek-born Louis
Roumanis, a local restaurateur direc-
ting the sale of the lamb and tomato
gyros sandwiches, the tent at 414 N.
Main will be "jammed" with people
dancing on the final two nights of the
festival. "It's like a zoo," he said.
THE TABLES IN the block-long tent
were filled with people feasting on the
souvlaki and barbecued chicken din-
ners accompanied, by the Greek wine,
Kokkinelli.
Master of ceremonies Evans
Mirageas, a 1976 University graduate,
invited everyone to dance off their din-
ner. He said the "honest-to-goodness
See YA'SOO, Page9
"I WILL NOT slap manatory govern-
ment controls on wages and prices just
through the 1980 elections and then
later watch inflation skyrocket out of
control," the president said. "I will
never fight inflation by deliberately
throwing millions of Americans out of
work."
In its monthly wholesale price report,
the Labor Department said food prices
declined 1.3 per cent in May, the shar-
pest drop in any single month since
February 1976. The price of beef and
veal fell 6.9 per cent, reversing five
consecutive months of increases.
Although prices of fuel and non-food
goods were up sharply again, Carter
administration economists said the
decline in food prices, if it continues,
should restrain the overall rate of in-
flation for the remainder of this year.
"THE LONG-AWAITED decline in
food prices is finally showing up, and
obviously offsets in substantial part the
rise in energy prices, which continued
unabated in May," Cox said. He said
the decline is continuing in June and
should be reflected soon in food prices
charged to consumers.
"It's bound to have some effect at the
retail level," agreed John Early, chief
of the Labor Department's division of
industrial prices. "Most food changes
pass through very rapidly."
The decline in the price of beef and
veal more than offset increases in the
previous three months. However,
wholesale beef and veal prices still
were 22.2 per cent above a year ago.
Carter to
retain
sanctions on
Rhodesia
WASHINGTON (AP) - President
Carter said yesterday he will retain
economic sanctions against Zimbabwe
Rhodesia because he doesn't think
recent elections there "were either fair
or free."
But the president suggested he might
change his mind if political conditions
change in the African nation.
CARTER SPOKE to reporters with
Secretary of State Cyrus Vance at his
side. Vance said the administration
would send a representative to Zim-
babwe Rhodesia to "observe progress
that is made. . . toward true majority
rule."
Vance said the administration obser-
ver has not been chosen.
Carter acknowledged that his
position probably will be opposed by a
majority in Congress. He said he will
report monthly to the House and Senate
on moves toward broader democracy in
See CARTER, Page 2
FTC to seek comments on oil pipelines
WASHINGTON (AP) - Government trustbusters Committee has been urging tough antitrust measures, competition in the field. In addition,.he said regulation
took a first step yesterday that could lead to ordering said, "For over 70 years, the pipeline ownership issue of rates insures that they are held to reasonable rates.
major oil companies to give up their petroleum has been explored in report after report and study after THE RULE REQUESTED by Kennedy would
pipelines, study. The cost to consumers in excessive rate
The Federal Trade Commission (FTC) decided to charges, inefficiency and loss of competition have been declare oil company ownership of pipelines to be "an
seek public comment on a request from Sen. Edward repeatedly documented. The resolution of this issue unfair method of competition and illegal under the
Kennedy (D-Mass.), that it prohibit oil companies has been postponed too long." antitrust laws. The FTC said it would like public com-
from owning the pipelines. The public comment will MIKE WATERS, a spokesman for the American Aer ths pusiio.
come before any FTC antitrust regulation. Petroleum Institute, took issue with Kennedy's After the publi comment, the commission staff is
MAJOR OIL COMPANIES now own most of the statement that oil company ownership of pipelines af- expected to report to the commission by the end of this
nation's petroleum pipelines, which move oil from fects prices paid by consumers for gasoline. year on what action it recommends.
wells to refineries and then to markets. They have He said transportation by pipeline is one of the Even if the commission issues a regulation barring
vigorously opposed past proposals to remove the cheapest forms anywhere. "The price of sending one. continued oil company ownership fo petroleum
pipelines from their-ownership. gallon of gasoline from Houston to New York is one- pipelines, appeals could be carried to the federal cour-
Kennedy praised the FTC action, which he called tenth as much as sending a one-ounce letter the same ts.
"an extremely important step on behalf of the distance," he said. KENNEDY HAS SAID federal regulation on profit
American public." , The spokesman for the oil industry group said ban- rates on pipeline operation is a failure because the
Kennedy, who as chairman of the Senate Judiciary ning oil company onership of pipelines would reduce government does not say how big the pipeline can be.