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.