The Michigan Daily-Friday, July 21, 1978-PageS5
Bank bill may boost local co-ops

By ELIZABETH SLOWIK
Ann Arbor co-ops will get a helping
hand if President Carter signs a bill
that would establ'sh a nationwide bank
to provide loans to the non-profit
organizations.
Carter is expected to give his ap-
proval sometime this summer to the
measure, which passed the Senate last
week. An earlier version was okayed by
the Houae laat aummer.
Local co-operative organizations like
the People's Food Co-op, housing co-ops
and the Student Buyers Association
would beneift from the legislation,
which has been in the works for four
yeara.
THE BILL PROVIDES for creation
of a National Consumer Co-operative
Bank to provide loans and technical
assistance to consumer co-ops. While
the bank would initially be federally-
financed, it would eventually be owned
by the co-operatives which purchase its
stock from the government.
Stewart Kohl, coordinator of the Nor-
th American Student Cooperative
Organization (NASO), said the co-op
bank would provide loans for items
such as equipment for food co-ops and
mortgages and remodeling for housing
co-ops.
Local co-operative organizations
greeted the new legislation with
cautious optimism.

"WE WILL TRY to get aid through
the bank," said Glenn Phillips of
People's Food Co-op. Phillips said
People's had tried to get a loan from
local commercial banks last December
to buy a building but its applications
were rejected. He said the banks
refused to loan People's the money
because the downpayment itself was
also a loan.
"That situation might he easier with
a co-op bank bill," Phillips said, "but
we don't know for sure."
Dave Friedrichs of Co-op Auto of
Washtenaw said that organization
would probably use the bank if the need
arises. But, he added, Co-op Auto is a
"boot-strap operation" wh'se 1600
members have given it "a solid basis."
SPOKESPERSONS from several
local co-ops said the next step is to see
what sort of regulations are attached to
the loans the bank will be authorized to
make.
"We don't have any proposals written
up," said Mark Creekmore of the Ann
Arbor Co-op Society. He said part of the
reason the Society has no plans to use
the bank is that no regulations are yet
devised.
"There is a considerable amount of
work yet," added Creekmore.
"THE WAY THE regulations are
written up makes a difference as to
what co-ops get money," said Mark
Schuetz of the Inter-Co-operative Coun-

cil. "We want to make sure they're
written up to help student co-ops, too."
The Carter Administration had
initially opposed the bill but reversed
its position in January. The House ver-
sion passed by only one vote, while the
Senate approved the measure 60-33.
The two versions of the bill still must
be reconciled through a committee.
"People think that will happen
quickly," said Margaret Lamb of
NASCO.
THE TWO VERSIONS were "vir-
tually the same" according to Mike
Heilman of Sen. Donald Riegle's
Detroit office. Both Riegle and Rep.
Carl Pursell (R-Ann Arbor) supported
the bill.
The main difference in the House and
Senate versions concerns the amount of
federal money allocated to the bank.
The House version earmarks a totai
$375 million, while the Senate bill could
provide $750 million.
According to NASCO's Kohl, the bill
was opposed by small business interest
groups who see co-ops as competition
and believe it is wrong for the federal
government to fund a competitive
business.
"EVERYBODY WAS very worried
about amendments that would damage
the bill of usefulness," Lamb said. The
measure faced five different amen-

dments before it passed unscathed.
Kohl said commercial banks are
generally reluctant to finance loans to
co-ops because they don't turn a profit
and are owned by their customers.
0
'The way the regula-
tions are written up makes
a difference as to what
co-ops get money. We want
to make sure they're writ-
ten up to help student
co-ops, too.'
-Mark Schuetz,
Inter-Co-operative
Council
"Bank dont understand consumer co-
ops," he said.
"Banks don't have confidence in co-
ops," Phillips added.

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Like fried rice, Chinese style? Try
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'U' MED SCHOOL DENIES PRACTICE: chilled head of iceberg lettuce. Eaters
roll up spoonfuls of the fried rice in let-
Se e tuce leaves and enjoy. These rolls are
HEW battles illegal patient billingfger food.
When you use canned bean sprouts,
By ALAN FANGER drain and then rinse in cold water
HEW INSPECTOR General Morris hospital." before using.
With Wire Service Reports testified, "An area that has become a Sen. Jacob Javits (R-N.Y.) said in
Doctors teaching at several U.S. matter of concern to our office in recent Washington he will ask the Committee .
medical schools may be billing the months is the practice of billing by on Human Resources to begin in- nthl atfth Spot.
government for services performed by teaching hospital staffs for patient ser- vestigating the problem immediately.aoher FifthSt.
interns and residents, Health, vices involving Medicare and Morris also warned medical colleges at the Farmers Market
Education and Welfare (HEW) Inspec- Medicaid." that his auditing team is looking closely Green$ Ok
tor General Thomas Morris testified in In response to that charge, Graff at the situation, but declined to predict 100% Artian Water
Washington yesterday. said the University follows existing whether criminal charges would result. 995-3100
Annain hafnr aSaaaOmit rules which Ball for the -,nricin dnn

Appearing eiore a 6enate Commit-
tee investigating fraud within HEW,
Morris cited an "increasing tendency
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formed no service at all."
OFFICIALS AT the University
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I uCaWilul ldl lu tesuper vsn1g uuc-
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A second allegation in Morris'
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DICKINSON CONFIRMED that this
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"These residents supply an in-
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medical school courses," Dickinson
said. "That is why their salaries are
paid by the University-affiliated

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