I .4 4 I' T- " Page Two THE MICHIGAN DAILY Thursday, July 9, 1970 Thursday, July 9, 1970 THE MICHIGAN DAILY I Costs By ROB BIER Dail} Nvws, Afnalysis The nation's economic woes have reached the University, possibly delaying construction of 400 apartments for married stu- deits. Because of the currently high iterest rates in the bond mar- ket, the University - to fund the housing project - may be forced to charge substantially higher rent for Northwood V than for other N o r t h w ood apartments. And this financial dilemma exists despite recent approval of a federal subsidy for the project, threaten married ho Because the state does not appropriate any money for the construction of University hous- ing, nearly all of it must be fi- nanced by the sale of bonds to private investors. Interest is paid to the investors at a fixed rate for the life of the bonds. When Northwood V was orig- inally planned, it was to be a 400-unit apartment complex. But when the housing office ap- plied to the Department of Housing a n d Urban Develop- ment (HUD) for a grant, to cover the difference between the three per cent interest rate for a federal loan, if it were avail- SPECIAL Blood, Sweat,& Tears Album No. 3 only $3.50 tax included HI-Fl BUYS 618 S. Main St. Ann Arbor able, and the current eight per cent interest for bonds, they were informed that only a lim- ited amount of money would be given for any one project. The housing office subse- quently split the project in two. and although they have receiv- ed more money from HUD. the subsidy still covers only t w o per cent of the eight per cent interest rate. Higher rents could produce the funds needed to pay the to- tal interest on the bonds. But the question still to be answered is whether students would be, willing to pay higher rates for apartments which would be es- sentially identical to the exist- ing Northwood IV. A meeting of the Student'Ad- visory Committee on Housing (SACH) is scheduled for 1 p.m. today on the third floor of the Student Activities Bldg. to ex- plore the question. Don Blevins, president of the Northwood/Terrace Association, says he is unhappy with the prospect of higher rates for the new complex, especially because this comes on the heels of the rent increase recently approved by the Regents to pay for the cost of educating children of Northwood tenants. "I think the only thing to do is wait and hope the economy improves in the next few years," Blevins says. But waiting h a s its draw- backs as well. SACH chairman Prof. Peter Ostafin, asks, "Do you wait a while for the market rates to drop? And if you do, will the rising costs of ^on- struction balance out any re- duction in rates?" One way or another, the hous- ing office wants to make a de- cision fairly soon. If the choice is to go ahead, they would like to get utilities put in at the 35- acre site on Glacier Way before fall, with full occupancy by fall 1972. And if the decision is to wait, then the housing office would like to release some of the project money for other under- takings in the interim. "If we do build it now, rents could be as mu c h as $42 a month higher than at North- wood IV," Salowitz says. Added to current rent rates, that would mean about $192 a month for a two-bedroom apartment with utilities and,$214 a month for a three-bedroom unit with utili- ties. "If someone c a n afford Io live in Northwoods V at those using rates, they can afford to go out into the private market," Blev- ins says. "Then, the University isn't filling its commitment for low-cost married student hous- ing." However, two factors are not likely to change in the near fu- ture, despite the vagaries of the nation's economy - the rising demand for housing a n d the shortage of it in Ann Arbor. "We've already got 600 appli- cations for married student housing, even though we've tried to discourage them," Salowitz says. "We'll only be able to fill a few hundred." Ostafin agrees and adds. "If we delay now, the situation may be so bad in a few years that we'll be sorry we didn't build." Rogers claims war DIAL 8-6416 ANOTHER OF DOUBLE ENCORE PROGRAM-.. . CLOSELY WATCHED TRAINS' Directed by JIM Menzel " A Carlo P'ont! presentation. Distributed by MK Sigma fi A tilmways Company. AND "TANTALIZING AND HYPNOTIC! " - Jdaih Crijt. N V World J.wu Trbw . eLJ6-AE-Sa & %# Si t&ASf mwWa*bv SGM 0 I down in S. Congress to hear anti-bombing law Vietnam SAIGON (R') - Willia Rogers surprised some me of his own staff here this when he said: "In one sen war is not being conducted per cent of South Vietna The secretary of state ex ed this view at an impri news conference in Phu T peaceful hamlet in the M Delta, during a tour Mc He said it again the nex with some elaboration, wh left Vietnam. "It is very encouraging t that about 90 per cent c country is secure, and that tions have been held in vi SHOP JACOBSON'S MON. 'TIL 9:00 P.M. TUES. THRU FRI. 9:30 A.M.-5:30 P.M, CLOSED SATURDAYS THRU AUGUST 8 l Im P. and hamlets in about 90 per cent mbers of the country and that in one week sense of the word I suppose we se the could say in that area of the I in 90 country the war is not being mn." -waged" he said. press- "I read from time to time omptu that the war has been enlarged, 'am, a but actually when you anal- ekong yze it, the war has been re- )nday. duc d." t day, Casualties have dropped, few- ien he er engagements have been fought, and the war is "at con- o find siderably less intensity than a )f the year ago," he added. t elec- Military statistics back up illages this last statement, but with a - million and a half allied troops operating from installations in 9ll 44 provinces it is question- able that the war is being waged in only a tenth of the nation. A spokesman for the U.S. Command refused comment ex- cept to say the command "has nothing to add to the secre- tary's remarks." One informed Army officer, saying he had no idea how Rogers could reach his conclu- sion, observed: "Maybe he was figuring that troops aren't ac- tually standing on more than 10 per cent of the ground at any #one time." SMore probably, the secretary was basing his statement on Hamlet Evaluation S y s t e m HES) reportsthat purport to show the degree of government control in all the 10.522 hamlets. The complex computerized rat- ing system last month showed that 89.7 per cent of the 17.8 million'people were living under relative government control in A. B, or C hamlets. The rest - in D, E or VC hamlets - were said to be living in contested areas or under Viet Cong con- trol. Officials and advisers who work with the HES reports on a local level say they indicate where efforts must be concen- trated, but few rely on them to show were people are safe. "All old HES was ever des- ignated to do was to show where the wind was blowing," said one official in the pacification pro- gram. "But you know we Amer- icans are mesmerized by fig- ures, and the HES percentages are so damn quotable." lIEE e i WASHINGTON oP) - Several months after a surge of explos- ions and bomb threats touched off calls for new federal anti- terrorist ,1a w s, congressional committees are arranging hear- ings on proposed legislation. Among proposals set for re- view by a House panel n e x t week is legislation offered last March by President Nixon, who said: "The archaic and criminal elements who perpetrate such acts deserve no more patience or indulgence.". Nixon's legislation is certain to cause controversy because it provides t h e death penalty when a terrorist act kills some- one. However, 'some backers say privately they might be willing to scrap the capital punishment provision if it endangers an otherwise acceptable bill. But they say long prison terms for convicted bombers are essential elements in an ef- The place to meet INTERESTING people! BACH CLUB presents ROBERT BOURY conducting a program on ELECTRONIC MUSIC featuring works of T. Kincaid, R. Boury & K. Carpenter and a simultaneous LIGHT SHOW Thurs., July 9-8 P.M. CANTERBURY HOUSE- 330 Maynard Refreshments & FUN afterwards. Everybody welcome! (No musi- cal knowledge needed.) If you need further info call 663-2827 or 769-2003. fective legal approach to the problem. While a House judiciary sub- committee prepares for hearings starting July 15 on suggestions for control of interstate traf- ficking in explosives, a Senate 'investigating subcommittee is reported planning an inquiry later this month into "the gen- eral problem of bombings and terrorism." The Senate panel headed by John L. McClellan (D-Ark.) in- tends to "outline the problem and take legislative recoxmmen- dations from a number of peo- ple -- and then go forward from there," a source said. McClellan is expected to an- nounce the dates for the inves- tigation soon. A mo n g the measures to be studied by the House subcom- mittee is one entered by Rep. Emanuel Celler {D-NY) aimed atmhelping law enforcement of- ficials fight crime while avoid- ing unnecessary federal restric- tions on the use of explosives for lawful purposes. Explosives - control measures flowed into Congress shortly af- ter a series of bombing inci- dents and bomb threats earlier this year. But t h e r e was no movement on t h e bills until now. Sen. Thomas J. Dodd (D- Conn.) had wanted hearings in May on a bill he introduced. But his Senate juvenile de- quency subcommittee post- poned action after he suffered I a heart attack. Most congressmen asked about the delaybytvarious other com- mittees contend more pressing problems and issues have con- sumed the time of the major panels given responsibility for hearing testimony on explos- ives control. The proposals range from Dodd's approach of revising the 1968 gun control law, to Rep. Charles Vanik's (D-Ohio) meas- ure to tax the transfer of blast- ing material and outlaw posses- sion of untaxed explosives. Try Daily Classifieds ABORTION AND ABORTION LAW REFORM a panel discussion with:. Denis Cavanagh, M.D. Chrm., Dept. of Gynecology and Obstetrics St. Louis University School of Medicine Gerald Flannery, S.T.L. Rector, St. Mary's Student Chapel Peter Forsythe, L.L.B. Forsythe, Campbell and Vandenbura, Attys. at Law WASHINGTON (P) - House rules allow congressmen to vote on issues like troops in Cam- bodia and the 18-year-old fran- chise without recording their in- dividual positions - but 57 members launched a drive yes- terday to end such secrecy. The group, not only biparti- san but representing every III IndoChina j Rep. William R. Anderson (D-Tenr after reporting to the House Indoc cutting off supplies into Haiphong of U.S. withdrawal from the war. BIPARTISAN EFFO House dr T to en sec I r" I:: 4- * ~~ 6 . s imported Italian hand-embroidered sweaters of fully lined white wool mohair for cool days and summer's air-conditioned places. White with multi-pastels. Sizes SML. $30. SPORTSWEAR- Second floor of fashion JaobaIS Sunday, July 12 Newman Center Basement 8 p.m. ALL ARE INVITED TO ATTEND NOW FAM NGCTHETRE ORPRATIN IM Thuar. 8:15 only NOWANATILCOMPANY Fri. 6:30, 10:00 Sat. 1:30, 5:30, SHOWING FOH VILLa E .:30 375 No. MAPLE RD.-7694300 8:15 a wadleigh-maurice, ltd. production technicolor® from warner bros. PASS LIST SUSPENDED I s c a c 0 a n is u V p 0 n n a a n I . a t 5 i7 r. a n i0 I a I , c P t i t. t j i. t 11" F BREAK TIHE HABITI Don't let the same routine get you down at lunch time. The Michigan Union buffet served daily from 11:45 to 1 :00 is the place. The atmosphere is relaxed, the menu is different, and the price is right. Don't wait, break the habit and try the Michigan Union buffet. Private rooms available by reservation CALL 764-7535 I it Heavy Duty Steering and Suspension Ports s BALL. JOINTS " IDLER ARMS * TIE ROD ENDS HELP WANTED: PEACE CANDIDATES are running for Congress in two nearby "swing" districts trying. to unseat conserva- tive Republicans. They must first win the Aug. 4 primary against old-line Democratic opposition. These are the big Congressional races in Michigan because they can be won. 18th dist. (Birmingham etc.) Mrs. Annetta Miller HQ 1-645-9454r 19th dist. (Livonia etc.) Ronald Hecker HQ 1-476-4063 NEEDED NOW: Campaign coordinators. No experience necessary if you can work hard, like talking to people, think fast - and - can spore Y2 to full time until Aug. 4. If you have less time or any other questions, call Marc Ross, Ann Arbor New Democratic Coalition, oft. 764-4459, eve. (till 11) 665-3166. 1 I i 3 a i LIBERTY AT MAYNARD 2333 JACKSON AVE Phone 769-5914 a L. i.