The Michigan Daily
Vol LXXXVlIINo. 60-S Ann Arbor, Michigan-Saturday, August 6, 1977 Ten Cents Twelve Pages

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House OK'S energyplan
WASHINGTON (1') - T h e serve two or three million bar- and natural gas producers could President's energy plan came In addition, the House passed
ouse handed President Carter rels of oil a day. In contrast, find enough reserves to at least earlier in the week when Repub- a tax on crude oil producers de-
s biggest legislative victory White House energy advisers postpone an energy crisis for licans and Democrats from oil signed to raise domestic oil
tsterday by approving a broad said Carter's original plan would decades if they only had enough producing states failed in an prices to the $13.60 now charged
an designed to make dramatic have saved about 4 million bar- economic incentives. It would attempt to deregulate the price by oil - producing nations - a
ifts in the way Americans use rels of oil a day. have partially decontrolled fed- of natural gas. move expected to raise gasoline
ergy. Although the House eliminated eral price controls on crude oil Instead, the House approved prices between 4 and 7 cents a
The e n e r g y package now administration-backed proposals prices and natural gas. a Carter formula for continuing gallon.
tes to the Senate where sub- for direct increases in gasoline federal price controls but at a
antial opposition already has taxes and for rebates for per- REPUBLICANS said they will higher level. This formula calls HOWEVER, THIS increase in
isen to many of its key fea- sons who buy energy-efficient campaign for next fall's con- for natural gas prices to rise 30 gas prices is to be rebated to
res, especially those calling small cars, the Carter energy gressional elections by accusing cents per ,thotisand cubic feet the publics by reducing federal
r new taxes on crude oil and program came through relative- the Democrats of passing an ex- initially and by an estimated 10 income tax withholding. The av-
industrial users of natural ly intact, despite scrutiny by pensive tax program which will per cent annually, thus giving erage rebate is expected to be
as. five committees and a sustained not solve the energy crisis. drillers an incentive to search about $22 per person.
The bill passed by the House floor attack by Republicans.- The biggest challenge to the Dit new supplies. See CARTER, Page 10

on a 244 to 177 vote sets two
major goals: a shift away from
American dependence on for-
eign oil and dramatic improve-
ments in energy conservation.
It will mean' higher energy
prices' for all Americans.
CONGRESSIONAL energy spe-
cialists sy the bill will con-

The final vote came afttr
House Democrats defeated 272
to 148 a strong Republican move
to cut out a critical tax on crude
oil producers which was intend-
ed to reduce both oil imports
and U.S. gasoline consumption.
The Republican p 1 a n was
based on the premise that oil

Phone employes
reject salary offer
WASIIINGTON (A-Union negotiators rejected a new wage
offer yesterday from the Bell System as a weekend deadline for
a nationwide strike by telephone workers moved closer.
The Communications Workers of America (CWA), the largest
of three unions involved in the talks, immediately rejected the
tel proposal as "inadequate," but said bargaining would continue
"around the clock if necessary."
However, two smaller unions were said to be considering the
offer. .
A COMPANY spokesmatn was optimistic that a walkout could
le avoided before the current three-year contracts expire at mid-
night today.
William Mullane, an assistant vice president of the American
Telephone & Telegraph Co.,
noted the CWA's agreement to
Skeep talking and said, "That
doesn't sound like asaber-rattl-
ing response."
Details of the new offer were
not disclosed, but Mullane said
[90 00 for it represented an "improve-
ment' over the company's orig-
inal proposal and "contained
G9N7F some new components."
CWA President Glenn Watts
had twarned Thursday that a
strike was "almost inevitable"
unless there was some "drama-
bunk l n tic break-through" before the
strike deadline,.tHe predicteda
strike would last for "months.'
WASHINGTON P) - Budget
Director Bert Lance disclosed WATTS ALSO said his mem-
yesterday that a bank that bers would not settle for any-
loaned him $2.7 million. in 1976 thing substantially less than the
had said in an internal docii- money packages won by auto
meet that it hoped to establish and steel unions the past year.
a business relationship with the These settlements amounted to
Georgia bank Lance headed. roughly 30 per cent spread over
Lance told a news conference, three years.
however, that the document did Involved in the talks with the
not state that the balances in CWA and its 500,000 Bell System
the "correspondent account" es- employes are the International
tablished by the Georgia bank Brotherhood of Electrical Work-
with the lending bank were as ers w it h 120,000 a nd the
condition of the loan. w - Telecommunications Intermation-
THE COMPTROLLER of the al Union with 70,000. All have
currency has been investigating said they will walk out begin-
Lance's b a n k i n g activities. ning at 12:01 a.m. local time
Lance said he called the news tomorrow..
conference because "he under- Bell's latest offer, made as
stands "erroneous information talks resumed yesterday, follow-
about the inquiry has been com- ing a'" -day recess, presum-
municated to the press." ably addressed the unions' key
Lance said he went to Manu- demand for "improved "job se-
facturers Hanover Trust Co. 'in curity."
April 1975 to borrtow money to --Conpany payronlls +have been
buy stock in the National Bank trimmed of nearly 100,000 work-
See LANCE, Page 1A See PHQNE; Page 19 ,-

AP Photo
President Carter congratulates James Schlesinger yesterday after he was sworn in as the nation's
first Secretary of Energy, a newly created cabinet office.
for Frmi II nuke site

By LANI JORDAN
A group of local residents will mount their bi-
cycles this morning and make a 40-mile trek to
Monroe to protest the Fermi It nuclear power
plant construction.
"When you're asking for alternative forms of
energy, human energy is the freest form of all,"
said Dan Mendolssohn, organizer of the bicycle
trip.
In riding their bikes to the plant site, he said,
' the group will symbolize a viable form of alterna-
tive. epergy.
MENDOLSSOHN IIEXPECTS between 25 and 40
persons to participate in the bicycle trip. The
bikers will meet at the People's Plaza (near the
cube} at 6:45 a.m. "The more people that show
up, the. more effective a statement we'll make as
ai group" Mendolssohn stressed.
'The planned route of the trip consists mainly
of flat country-roads. Bikers will divide into two

groups to enable participants to travel at their
own pace. Mendolssohn expects the trip to take
between three and four hours. The group will be
attored in matching T-shirts which carry slogans
protesting the Fermi II construction.
The Fermi I3 rally, only one of 120 nuclear
power plant protests taking place nationwide be-
tween August 6 and 9, will feature the release
of hundreds of helium-filled balloons, each bear-
ing a post card stating that the winds which
carried the balloon could also bring leaded radio-
active material from the power plant.
IN 1966 an accident at Fermi I, on the same
site, nearly necessitated evacuation of the De-
troit area. Foes of nuclear power cite this as well
as cost, unreliability, and radioactive waste aS
arguments against this method of energy pro-
duclton.
See BICYCLISTS, Page 19