MSA ELECTIONS See editorial page : ' LRtE igrirn 1E aiI CLEARING See Today for details Nnety Years of EdAiorwiIFr(eedom ' Vol. XC, No. 113 Ann Arbor, Michigan-Saturday, February 16, 1980 Ten Cents Eight Pages j l Wholesale prices roar 1.6 per cent From AP and UPI ,WASHINGTON-Wholesale prices surged a shocking 1.6 per cent in January, the most in five years, leading the Federal Reserve Board to take new actions yesterday to drive up interest q ates to head off another burst of inflation. Acting less than an hour after the Labor Department's price report, the board voted unanimously to increase its discount rate by a full percentage point to :13 per cent, up from 12 per cent. THE BOARD acts independently of the Carter adminsitration, which in the past has expressed mild regret at the steady upward pressure on interest rates. The increase in the discount rate, which is the interest the Federal Reserve charges on loans to commercial banks, is certain to push up interest rates throughout the economy. Officials of the already reeling housing industry predicted it would be especially hard-hit. In another economic development, the Federal Reserve reported that industrial production rose a slim 0.3 per cent last month. THE NEW PRODUCER price report offered vivid evidence consumers can expect no relief from the relentless pressures of inflation during coming months, particularly when additional OPEC oil price increases are passed along to consumers. President Carter has consistently ruled out mandatory wage-price controls as an antidote to inflation. But some private economists have said recently controls may be the only answer. The January increase in wholesale prices was the largest monthly rise since November 1974, when prices increased 2 per cent. It singled a big increase in consumer prices as wholesale price rises oftein show up within weeks at the retail level. THE INCREASE was especially distressing to administration See WHOLESALE, Page 10 Regents OK 11.2% dorm rate increase Daily Photo by MAUREEN O'MALLEY BARRY LYNN, National Chairperson of the Committee Against Registra- tion and the Draft (CAD), spoke yesterday at the Guild House. Lynn said that Congressional opposition to Carter's registration plan is growing and poses a potential threat to its passage. ynn: regstra-ion By SARA ANSPACH The University' Regents yesterday voted to raise student housing rates 11.2 per cent in accordance with the housing director's recommendation. The price for a single room in a traditional residence hall next year will increase about $247 from this year's $2,215.52 rate. The cost for a double room will increase $209 from $1,868.21 to $2,077.05 and the cost of a triple will rise $183 from $1,648.02 to $1,831.21. ALSO AT yesterday's meeting, the Regents approved by a narrow 3-2 margin a proposal by Regent Thomas Roach (D-Saline) to grant local developer John Stegman a year-option to buy a 16,659 sq. ft. strip of University land behind the Church Street parking structure. THE UNIVERSITY property would be part of the site of a parking structure behind a proposed 32-story high-rise hotel, apartment, and condominium complex. Sixteen floor of the proposed structure would be hotel rooms, eight floors condominiums, and eight floors apartments. In December, Stegeman offered the University $5000 for a year-long option to buy the land for $200,000 plus an inflation index adjustment. The proposal approved by the Regents yesterday means that if Stegeman-working through Quadrium Corp.-decides not to purchase the land, he will pay the University a total of $10,000 for the option privilege. THE UNIVERSITY land desired by Quadrium is currently used as a driveway-with some parking spaces-for the University parking structure on Church Street. The developer has agreed to provide another driveway exit for the University parking structure if he buys the property. Regent Deane Baker (R-Ann Arbor) said he is vehemently opposed to the project. "It is not that simple an issue," he said before the vote. "If it is approved . . we've destroyed the ambience of the total Ann Arbor community." Roach said Thursday that Stegeman's proposal was "pretty good business." Yesterday he noted that considerations of how the high-rise would effect the city are "properly the control of Ann Arbor City Planning Commission." If Stegeman's proposal is rejected by the city, Roach said, the University has, at least, "achieved the benefit of the option price." CITY COUNCILWOMAN Leslie Morris (D-Second Ward) urged the Regents Thursday not to grant Quadrium the option. She said the area was already severely congested and was essentially a residential area. In a telephone interview yesterday, Can ham: Men athletes m ore 'intense' than women In a rare appearance before the Regents, University Athletic Direc- tor Don Canham yesterday defended his department's policy of awarding more athletic scholarships to men than to women. "One of the problems that we have is we are getting attrition (with women athletes)," Canham said in response to a question by Regent Sarah Power (D-Ann Arbor). He said women have tended to give up their scholarships more often than men do. "Men are far more intense about athletics," Canham said, adding that men are more interested in becoming professional athletes and coaches than women are. CANHAM ALSO said regulations for women's sports prohibit coaches from recruiting on the same level men's coaches can. The University intercollegiate athletic program is generally. con- sidered to be one of the nation's most successful financially, but it has come under fire recently for its policies towards women's sports. Canham attended the meeting to discuss uses of the new athletic field house. Stegeman said the next step for Quadrium is to prepare a proposal to submit to City Council. He estimated this process will take six to eight weeks. To get approval to build in Ann Arbor a developer first has to submit a proposal to a City Council. Council refers the proposal to the City Planning Commission, which reviews the plan and sends the matter back to Council for a final vote. According to Morris, a high intensity project such as this proposal "would See REGENTS, Page 2 may fail ii By GREG WOLPER President Carter's proposal to revitalize the nation's Selective Service System and re-institute the draft for millions of 19 and 20-year-old men and women might not be approved by Congress, according to the head of a national anti-registration organization. Barry Lynn, national chairperson of the Committee Against Registration and the Draft (CARD), said yesterday at the Guild House that there is a "growing chance" that the funding bill will be defeated when it comes to a vote in Congress. Although Lynn said only two senators were committed against the plan im- rCongress mediately after Carter's State of the Union address, he estimated some 25 are now planning to vote against the measure. "There is a good chance that both Michigan senators will vote against the bill," Lynn said, although he did not in- clude the two - Democratic Senators Donald Riegle and Carl Levin - in his list of 25 committed against the bill. "It will be an uphill battle to say the least," he added. Lynn said that draft registration "does not make sense." He quoted Sen. Edward Kennedy (D-Mass.)- as saying registration would save only 13 days in See LYNN, Page 3 Release of hostages remains uncertain From UPI and AP Iranian Foreign Minister Sadegh Ghotbzadeh said yesterday the Americans held hostage in Tehran would be freed only if both Iran and the United States accept the findings of an international inquiry into the alleged crimes of the deposed shah. At the United Nations, a spokesman for Secretary General Kurt Waldheim said the commission conducting the inquiry was nearly formed and that its members could be announced "possibly today, maybe tomorrow." BUT HOPES that the commission's inquiry would lead to the release of the 50 Americans being held hostage in the U.S. Embassy for the 104th day were tisettled when Ghotbzadeh said in Paris that Iran must approve the com- mission's findings and the United States must accept them. Ghotbzadeh added, "There will be no automatic release. Everybody must first agree to the findings." Ghotbzadeh's statement contradicted comments by former Irish Foreign Minister Sean MacBride that the ap- See RELEASE, Page 2 5TH WARD GOP COUNCIL HOPEFULS They all want to represent you: Cabbie city election '80 Lalonde i tries again By JOHN GOYER The Harold Stassen of city politics is a 55-year-old taxicab driver named A.J. Lalonde. "This is my sixth time," LaLonde said last night, referring to his bid for the Fifth Ward Republican nomination. He acknowledged that he had in the past run on both Republican and Democratic tickets. "I'VE BEEN rated the underdog and I don't like to be in that position. I'd like to win," he said. LaLonde, a tall man with brush- cut salt and pepper hair and blue eyes, claimed that he won one-third of the vote in his last campaign for council. LaLonde is running on a platform of "improving communication bet- ween the politicians and the public," and he promises to meet with his constituents once a week. TO EACH question on an issue LaLonde replied that he would meet See CABBIE, Page 10 Teacher Chesbrough 'accredited' By JOHN GOYER Joyce Chesbrough, council can- didate in the Fifth Ward Republican primary on Monday, believes the campaign will be won not by the candidate with the most popular platform, but by the candidate with the best credentials. She served as a member of the Ann Arbor Transportation Authority Board from 1974 to 1979, appointed by former Mayor James Stephen- son, and was a member of the first Washtenaw County Jury Com- mission, appointed by Governor Milliken. "I ENJOY being in the public do- See CHESBROUGH, Page 10 Broadcaster Velker 'Christian' By ELAINE RIDEOUT The youngest Republican can- didate running for the Fifth Ward council seat is Lou Velker, 31, associate director of WYFC, a Christian-oriented radio station. Velker said he is running because "I want to see Ann Arbor continue to be a nice town." He added, "I think Christians should be more involved in the community." Velker ex- plained that he would like to pattern his life after some Christians in a book called In His Steps. "In the book," he said, "before they do anything they say, 'How would Jesus Christ have done it?' I would like to be a councilman with that thought in mind." See VELKER, Page 10 Innkeeper Gudenau confident' By JOHN GOYER If there is one word to describe William Gudenau, a City Council candidate in Monday's Fifth Ward Republican primary, the word is confident. "If you were to put all those running in a room. to decide which candidate would be the most outstanding Republican, I think there would be little to decide," Gudenau said recently. THAT. SAME week Gudenau reported that his campaign had raised about $4,400 before the primary-nearly four- times the amount received by anyone else in the campaign. Gudenau, 37, manages both Holiday Inns in Ann Arbor. He has strong ties with the city's Republican party, having served as chair of the city party for three years in the mid-seventies. He. See INNKEEPER, Page 10 AP Photo AN IRANIAN BOY taking part in a demonstration supporting the takeover of the U.S. Embassy in Tehran, where 50 Americans are still being held hostage, shows a photographer what he thinks about having his picture taken. £ ___________________________ U U I returned, so yesterday morning, notices that the kidnappers would give Hittleman another chance popped up all over Alice Lloyd. The second demand was that she see to it that all Soviet troops were out of Afghanistan by midnight last night. Coming to the aid of their fellow resident, a group of students formed the Save the Monkey At All Costs (SMAAC) coalition, and offered one of its own members, the Rev. Ralph Smith as a hostage in exchange for the monkey. (Smith is a reverend in the Universal Church-the one that ordains ministers for $1). Members of SMAAC also telephone the "powers that be" to see what they could do about the monkey's situation. Members of the group tried unsuccessfully to speak with Soviet President the mail and, at other times, to change its rules so that new words may be invented. He and his roommates have formed the Association for Radical Recreational Orthography on the West Side (ARROWS) and are sponsoring the New Scrabble Fest at 8 p.m. tonight. There will be no winners or losers in this event, and the entry fee, based on a sliding scale is a six pack. C Vintage Valentine It might be called somewhat of a latent consummation, but yesterday Margaret White and Virgil Chapman got married, some 60 years after they had met. The couple met in high school in Troy, Ky. in the 1920's. They dated and talre dAnut marrina hut Chanman went to work on a Dead giveaway According to the January 1980issue of Student Lawyer, a monthly publication for law students, Mark Maybry of Albuquerque, New Mexico, doesn't exactly cover his tracks after he has wronged. After Maybry's mother was found murdered, police detectives only had to go to his room to find -the big clue. There they found a list which read: "Things to do: (1) buy shells, (2) shoot father, (3) shoot mother." ' On the inside For an analysis of President Carter's failure to live up to his promises to decriminalize marijuana, see the .7:x..:_.1..nrt fi --1 - ao nna ht' .--isis wns __ Local hostage i I I i