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May 14, 1976 - Image 1

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Michigan Daily, 1976-05-14

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The Michigan Daily
Vol. LXXXVI, No. 8-S Ann Arbor, Michigan-Friday, May 14, 1976 Ten Cents Twelve Pages

Eagleton

backs

Carter

Reagan picks up 15
Brooklyn delegates
By The Associated Press
Jimmy Carter's campaign for the Democratic presi-
dential nomination was endorsed yesterday by Senator
Thomas Eagleton (D-Missouri) and a host of other party
leaders in Missouri who will lead a 71-vote delegation to
the national convention.
Eagleton and the others said in a statement: "We
believe that Gov. Carter is the right man at the right
place and right time to lead our party and our country.
We believe that now is the time for the Democratic party
to unite behind Gov. Carter and to begin our unified
march to the White House."
PRESIDENT FORD, working furiously to derail Ronald Rea-
gan by winning in his home state of Michigan, was endorsed for
the Republican nomination by Henry Ford, who had said earlier
that he thinks Carter would make the best Democratic nominee.
The Ford Motor Co. chairman declined to say which man he
would support in November.
Reagan opened the split in New York state's Republican ranks
a little wider, winning the endorsement of 15 delegates from
Brooklyn.
Other presidential contenders were busy wooing residents of
states that will hold primaries in the next two weeks.
CALIFORNIA GOV. Edmund Brown, campaigning for next
week's Democratic primary in Maryland, said he will add Oregon
to his active campaign schedule. That state holds its primary
- May 25.
Rep. Morris Udall (D-Arizona) campaigned in Michigan, hop-
ing for an upset over Carter in what has developed as the first
one-on-one test between the two, although five other Democrats
remain on the ballot. Udall criticized Carter for not coming out
more strongly against right-to-work laws.
Sen. Frank Church of Idaho, the winner of the Democratic
primary in Nebraska on Tuesday, was in Washington on Senate
business. In Boise, Idaho, an aide said he passed up a chance to
be interviewed on national television this weekend to keep an
earlier commitment to address graduation ceremonies at Boise
State Univeristy. His next big primary test is May 25 in Oregon.
CARTER BEGAN the day with an address to a conference on
$ energy and world order held at the United Nations. He called for
a five-year U.S.-Soviet agreemnt to halt nuclear testing for all
purposes, including peaceful development. He also proposed a
r World Energy Conference, sponsored by the United Nations and
patterned after meetings on food supply and population.
Later, Carter left for Michigan. He plans to visit Maryland
on Friday.

Carter denies knowledge of
T.V. debate challenge by Udall

By SUSAN ADES
Democratic presidential candidate Jimmy
Carter, when asked last night why he had not
yet replied to a challenge by his chief Mich-
igan primary opponent Morris Udall to debate
with him on a one and a half hour Lou Gordon
Show this weekend told the Daily, "I don't
even know about it."
Udall's Michigan campaign coordinator, Paul
Tully, retorted, "it's inconceivable that he
hasn't heard about it."
Carter was in Detroit last night to address
a predominantly black group of some 700 elder-
ly citizens and a number of ministers at the

Veterans Memorial Building.
Tully maintained the invitation was extended
by telegram from Udall personally after Lou
Gordon publically offered the debate oppor-
tunity to the two candidates during his appear-
ance with Udall at Northland last Saturday.
"Lou Gordon himself apparently called Car-
ter headquarters and one telegram was sent
to about four different campaign stops," said
Tully. Though it is possible that the message
never reached the candidate, Tully insisted,
"Carter has prided himself on his campaign
management and organization, he knows."
See CARTER, Page 10

Congress sets budget ceiling

WASHINGTON (M)-In a historic move, Congress
yesterday passed a resolution setting a tentative federal
spending ceiling of $413.3 billion. Democratic backers
said it would spur the economy by boosting employment
and continuing tax cuts through fiscal 1977.
President Ford immediately issued a statement cri-
ticizing the budget, which is nearly $18 billion more
than he proposed. He vowed to trim expenditures.
PASSAGE OF the measure marked the first time
Congress enacted its own budget rather than simply
acting on a president's proposals.
Republicans opposing the resolution said the pro-
posed budget could spark inflation. Ford said, "I hope
everybody realizes that this resolution does not come
to the President for action. If it did, I would veto it,"
he added.
But even before the measure was given final ap-
proval by the H o u s e, Republicans and Democrats
agreed that higher interest rates might hike the total
by $4 billion for the fiscal year beginning Oct. 1. They
differed, however, on who should take the blame for
any hike.
HOUSE B U D G E T Committee Chairman Brock

Adams (D-Wash.) said a $4 billion increase in interest
on government debts would depend on whether Federal
Reserve Board Chairman Arthur Burns raises interest
rates. "If he increases interest rates, Burns will bust
the budget," Adams said.
Rep. Herman Schneebeli, of Pennsylvania, ranking
Republican on the House Ways and Means Committee,
said it is Congress' high spending that will drive up
interest rates.
"The very fact that we're approving $17.5 billion
more than the President wants itself causes interest to
rise," Schneebeli said.
THE $413.3 BILLION federal spending target en-
visions a deficit at the end of the year of $50.8 billion
compared to Ford's estimate of a $44.6 billion deficit
from his $395.8 billion proposed budget.
Congress' target assumes continuation of this year's
tax cuts through 1977. Democratic backers say it also
will stimulate the economy by creating a million more
jobs than Ford's proposal.
The House passed the measure by a vote of 224 to
170. Most Democrats were for the resolution and most
Republicans against it.

THE SENATE approved it on Wednesday by a 65 to
29 vote.
Adams told reporters after the vote that 220,000
of the 1 million jobs depend on whether Ford vetoes a
new $2.5 billion federal public works bill.
Adams acknowledged that either a hike in interest
rates or the Senate's failure to approve $2 billion worth
of tax changes approved by the House could force
Congress to exceed its budget.
CONGRESS PLANS to adjust the $413.3 billion
target figure in October and approve a final ceiling
which, will set mandatory limits on Congressional spend-
ing for the fiscal year.
The target includes $100.8 billion for defense, only
$300 million below Ford's proposal.
The major increases are for jobs, health, resources,
veterans benefits and federal health payments such as
food stamps, welfare and unemployment insurance.
Congress' economists estimate the extra spending
for federally-aided jobs will cut the present 7.5 per
cent unemployment to 6 per cent, compared to 7 per
cent estimated for Ford's budget.

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