Somoza 's
nat'l guard
attacks
rebel-held
Mas aya
Kelley suit
challenges
Mich. Bell
rate hike

MANAGUA, Nicaragua (AP)-President Anastasio
Somoza, uringing his aides to "strap on your pistols" for a
fight to the finish, threw hundreds of troops, aircraft and ar-
mored vehicles into an attack yesterday on the guerrilla-held
town of Masaya, government sources reported.
It was the national guard's first major attempt to recap-
ture a town since the current wave of fighting broke out in
late May and the Sandinista guerrillas seized 23 towns and
cities across Nicaragua.
The outcome of a battle for Masaya, 20 miles south of
here, could foretell the fate of the Somoza government.
THE GOVERNMENT CLAIMED again yesterday that its
forces had repulsed a guerrilla attack on the town of Rivas,
60 miles south of Managua and 25 miles north of the Costa
Rican border. The guerrilla radio has claimed the rebels cap-
tured all but the town's national guard headquarters.

The Michigan Daily-Friday, July 6, 1979-Page 9
"I have just talked with our commander in Rivas, and he
says the national guard is in complete control of the city,"
presidential press secretary Rafael Cano said.
He said government troops cleaned out pockets of snipers
after driving back a rebel assault the day before.
MAX KELLY, SOMOZA'S personal secretary, said hun-
dreds of troops were sent from Managua to join in the offen-
sive against Masaya. He would give no further details, but a
high-level military source said air and armored forces would
take part.in the attack.
A military spokesperson earlier this week announced a
push on Masaya but reporters visiting the area found only a
minor probing action.
The Sandinistas now hold all thejmajor population centers
of Nicaragua, except for Managua, nearby Granada, and
ports on the Caribbean side of the country.

LANSING (UPI)-Attorney General
Frank Kelley filed suit against the state
Public Service Commission (PSC)
yesterday, charging it uncon-
stitutionally refused to hear testimony
opposing Michigan Bell Telephone Co.'s
recent $41 million rate hike.
Kelley also charged that the PSC
violated state and federal constitutions
by refusing to give Bell's residential
customers proper notice of the interim
increase.
Both actions violated due process
guarantees, he said.
KELLEY ASKED the Ingham County
Circuit Court to nullify the rate in-
crease until Bell gives notice to all af-
fected customers. He also asked for an
injunction prohibiting what he called
"one-sided" PSC hearings in the future.
"The PSC only heard one side of the
case," Kelley said.
"By looking only at the evidence on
one side, the result is predetermined.
The PSC will always grant a rate in-
crease," he said.
BELL, BY FAR Michigan's largest
telephone company, filed last Decem-
ber for a $142 million rate hike,
claiming the increases was needed in
part to cover rising labor costs.
The company gave notice that the in-
crease would apply only to certain
business customers receiving special
services-not to regular residential
phone users, Kelley said.
During hearings which continued for
31 days and generated 4,000 pages of
transcript, the PSC only heard
testimony from Bell witnesses and, an
abbreviated report from its own staff,
Kelley charged.
Kelley said the PSC refused to hear
from two expert witnesses his office
had hired and flown in from
Washington, D.C. to testify against the
increase.
He said the commission also refused
to accept U.S. Labor Department
statistics showing a 7.8 per cent in-
crease in productivity more than offset
the labor costs cited by Bell in its
request for an increase.
Kelley said the final PSC order ap-
proved a 3.5 per cent surcharge on the
bills of all Bell customers rather than
those specifically mentioned in the
company's notice.

0~$fA
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