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.