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METAMORPHOSIS
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I
TI. XC, No.:119
Ann Arbor, Michigan-Saturday, February 23, 1980
Ten Cents
Eight Pages
High-rise developer filed for
By SARA ANSPACH
Local developer John Stegeman, who
ans to build a 32-story multi-use
complex'in the S. University area, filed
for bankruptcy last June, the Daily has
learned.
The University Regents last week
granted Stegeman an option to buy
some University land for the project,
apparently without knowledge of his
financial background.
BUT SEVERAL Regents said by
telephone yesterday that they probably
uld have voted in the same manner
en if they had known of the
bankruptcy proceedings.
"That's a very acceptable business
practice," said Regent Gerald Dunn
(D-Flint). "An individual's personal
habits don't bother me very much."
Stegeman filed for bankruptcy under
Chapter Eleven of the Bankruptcy Act
on June 5, 1979. Unlike standard
bankruptcy proceedings, the Chapter
Eleven provision allows a person to
hold off creditors while he or she
attempts to raise necessary funds.
Stegeman has built many local
student apartment complexes including
Tower Plaza, Maynard House, Albert
Terrace, and Viscount apartments. He
also constructed the Campus Inn but
lost it several years ago in a mortgage
foreclosure.
THE AGREEMENT with Stegeman
that the Regents approved last week
states that Stegeman's company, the
yet-to-be-incorporated Quadrium
Corporation, will pay the University
Regents say it won't
affect 'U' land deal
$5,000 in cash when the option
agreement is signed. If Stegeman
purchases the land, he will pay the
University $200,000 in cash at the time
of the closing.
"We aren't extending any credit (to
Stegeman)," Regent Thomas Roach
(D-Saline) said yesterday. Because the
money will be "paid up front," he said,
the state of Stegeman's finances is not
relevant to the purchase agreement.
Several members of City Council and
the planning commission say it is
"highly unlikely" that the City will
approve Stegeman's building proposal.
Repeated attempts to contact
Stegeman in the past two days
regarding the composition of Quadrium
Corporation have failed. His lawyer,
Fredrick Hoops, refused to name the
other people involved with Quadrium;
Stegeman has called himself a
"spokesman" and "representative" of
the company. Hoops said, "That matter,
(the m
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ake-up of Quadrium) has been proceedings. This land, bordered by S.
ed with the Regents." Forest, Washtenaw, and Old Forest
REGENTS who were contacted Avenues, is not currently owned by
Jay, however, said they were not Stegeman, although he has purchased
ir with any member of Quadrium an option on it. If the present owners of
han Stegeman. the property do not pay $84,000 in back
Irium is currently in the process taxes and payments by May 28, the land
oming a legal entity, Stegeman will be returned to the city. If that
an earlier interview. occurs, Stegeman would have to
eman hopes to build the 32-story attempt to purchase the property from
use facility on the corner of the city.
enaw and S. Forest. Now that he At last week's Regents' meeting,
option on the University land-a Stegeman said plans forhis 32-story
sq. ft. lot behind the University's building include 16 stories of hotel
h Street parking structure--he space, 8 stories of apartments, and8
e has acquired all the property stories of condominiums. He declined
eary for his project. to say how much the apartments would
PIECE OF property essential to rent for, although others have
mE We Frn prrtyn tial to estimated the prices will be at the
t1 h erJv is ,L.
mans project ,t wevf ul
ntly subject to default
See DEVELOPER, Page 3
Afghan government
installs martial law
AP Photo
WHILE THE USA's Steve Christoff had this shot rejected by Soviet goalie Vladislav Tretjak during the first period of
last night's Olympic battle; the spunky American's were not to be denied. Scoring twice in the final period, the U.S.
team handed the Soviets their first Olympic loss since 1968, 4-3.
CLOSING IN ON OLYMPIC MEDAL:
,
U.S.icers stun Soviets, 4-3
From AP and UPI
Resistance to the Soviet military
presence in Afghanistan spread to
much of the Central Asian country
yesterday, with at least three persons
reported killed in massive street
demonstrations in Kabul. The Moscow-
backed government proclaimed mar-
tial law and ordered a curfew in the
capital city.
The official Soviet news agency Tass,
which reported the imposition of mar-
tial law, said the Afghan government
was trying to curb a wave of "plun-
dering and arson" by Moslem rebels
and "foreign agents and mercenaries."
Tass also said an American known
for his links with the CIA and 16
Pakistanis were arrested in,
Afghanistan for anti-government ac-
tions. The news agency identified the
American as Robert Lee, but provided
no other personal information about
him.
A STATE Department official in
Washington who said he was acquain-
ted with Lee, described him as a
private citizen who had traveled "for
some time" in Afghanistan and had no
link with the U.S. government.
Most merchants in Kabul began a
protest strike Thursday, and their
shops remained closed yesterday, the
Moslem sabbath, according to reports
from the Afghan capital reaching New
Delhi, India.
Thursday's commercial strike, urged
in handbills distributed by the anti-
Communist Moslem guerrilla
movement, was observed by nearly all
the stores, shops and restaurants in this
city of one million inhabitants. Similar
anti-Soviet strikes were reported last
week in other Afghan cities, but were
not as dramatic as Kabul's.
STATE DEPARTMENT spokesman
Thomas Reston said the strike "is
clearly designed to show the Afghan
people's refusal to recognize the
legitimacy of the Babrak Karmal
regime and the presence of the Soviet
forces."
Soviet President Leonid Brezhnev
said in a Moscow speech yesterday
"there was no and is no Russian inter-
vention in Afghanistan." He warned the
West against talking tough to the
Kremlin and said Soviet troops would
not be withdrawn from the country until
the United States and Afghanistan's
neighbors guarantee an end to "all
forms of outside interference."
The State Department said this week
there were about 70,000 Soviet troops
inside Afghanistan and another 30,000
across the Soviet border. The Russians
sent the troops in last December to help
fight a Moslem rebellion against a
string .of cnmmunist regimnes. The
current government, headed by
President Babrak Karmal, was in-
stalled in a Soviet-backed coup Dec. 27.
THE SOVIETS tried to justify their
move into Afghanistan in Decembier by
saying they were just responding to
outside interference. That charge has
been consistently dismissed, not only
by the United States but by most other
nations.
Brezhnev said that Washington is cir-
culating lies about the Russians
warring against the Afghan people, and
a Soviet threat to Pakistan and Iran,
with the "pretext to broaden its expan-
sion in Asia and it creates this pretext
by any means.
"The United States would like to
subordinate these countries to its
hegemony, to pump out, unimpeded,
their natural wealth, This is the crux of
the matter." ,
He said the United States "loudly
demands the withdrawal of Soviet
.troops kuit in fact is doing everything to
put off this possibility; it is continuing
and building up its interference in the
affairs of Afghanistan.
From UPI and AP
}LAKE PLACID, N.Y. - In one of
the most stunning upsets in hockey
history, the United States handed
the powerful Soviet Union its first
Olympic hockey loss since 1968 last
night when Mark Johnson and Mike
Eruzione scored dramatic goals
midway through the final period for
a 4-3 victory.
The victory over Finland Sunday
would put the U.S. in no less than
*econd place and more likely in gold
medal position as the Americans
seek to repeat the 1960 Miracle at
Squaw Valley, when they beat the
Soviets in the semifinals and downed
the Czechoslovaks for the gold
medal.
IN HANDING the Soviet Union its
sixth loss in 46 games since it started
competing in the Olympics in 1956,
the American amateurs accom-
plished what the National Hockey
League All-Stars could not in last
year's Challenge Cup Series.
The loss is the Soviets' first since a
5-4 defeat by Czechoslovakia at
Grenoble, France, in 1968.
When the clock ran out, the
Russians stood glumly on their blue
line awaiting the traditional closing,
ceremonial handshake with their
opponents.
BUT THE Americans were much
too busy, tackling each other in
sheer joy, waving to a delirious
crowd and hoisting their sticks into
the air.
As a capacity Olympic Center
crowd of over 8,500 urged them on
with a chant of "USA, USA," the
young Americans, despite being out-
shot 30-10 over the first two periods,
stayed in the game and set up their
winning rally with an outstanding
third period checking performance.
With a Soviet off the ice for high-
sticking, Johnson scored his second
goal- of the game 8:39 into the third
period to tie the score 3-3.
THE U.S. took a 4-3 lead just 1:21
later, when team captain Eruzione
picked up a loose puck, walked in
between the faceoff circles and fired
a screened 30-footer past Soviet
goalie Vladimir Myshkin.
U.S. goalie Jim Craig then stopped
Aleksandr Maltsev twice and the
Americans held the lead as the game
entered its final nine minutes.
January consumer
price increase worst
in over six years
Pierce, Bullard discuss 'U' tuition hikes
By MITCH STUART
Students must insist that they will not
pay higher tuition to give higher
salaries to faculty, two state legislators
told a Michigan Student Assembly
(MSA) committee yesterday.
State Senator Edward Pierce (D-Ann
Arbor) and state Representative Perry
Bullard (D-Ann Arbor) discussed a two-
tep process to keep tuition down with
embers of the -MSA's Legislative
Relations Committee.
PIERCE AND Bullard stressed that
students must lobby in Lansing along
with the University administration for
a higher state allocation, and must
make it clear that they do not want to
pay higher tuitions to increase faculty
salaries.
Governor William Milliken has
recommended to the state legislature a
9.5 per cent increase in the state
allocation for the University. The
is likely to win if a choice must be made
between a large tuition increase and
raised faculty salaries.
'You can't buy a Cadillac for the price of a Chev-
rolet. I think we have a Cadillac faculty.'
-Prof. Harvey Brazer,
CESF chairman
prime interest in the quality of
faculty."
Quality faculty cannot be attracted to
the University if salaries are below
national standards, Brazer said. "You
can't buy a Cadillac for the price of a
Chevrolet. I think we have a C'adillac
faculty," Brazer said.
Brazer did add, however, that there is
a connection between tuition and
salaries. "The conflict certainly is
there . . . in the sense that the lower the
tuition increase, the less able the
University is to pay higher salaries to
faculty," he said.
PIERCE SAID, "Usually the
legislature will add to the governor's
recommendation for education,"' but
warned that might not be the case this
year.
See MSA, Page 3
From AP and UPI
WASHINGTON-Economic news
continues to be dismal, as consumer
prices surged upward by 1.4 per cent
in January, the largest one-mont
increase in six-and-one-half years.
In New York, the prime lending rate
charged by some major banks
soared to a record 16112 per cent
yesterday as the effects of the latest
credit-tightening moves by the
Federal Reserve Board began to be
felt.
The January price increase, an
annual rate of more than 18 per cent,
compared, to 13.3 per cent for all of
1979, was partly due to another steep
jump in fuel and housing costs. The
price of gasoline rose 7.4 per cent,
the most ever, to an average of $1.11
per gallon for all types.
"IT IS BEGINNING to appear
that the underlying rate of inflation
is starting to explode," said Robert
Russell, director of the
adminsitration's anti-inflation
agency. He said "an explosion of
wage increases" also is probably
inevitable.
The increase in prices, the worst
for any month since August, 1973,
See CONSUMER, Page 3
240
230
220
1461=104....
-
]an.
- 233.2
. i4IAME
University has recommended an 11 per
cent increase in faculty salaries.
Neither Pierce nor Bullard expressed
much hope that next year's tuition in-
crease could be held below 10 per cent.
Bullard and Pierce warned that
although the University will lobby -for a
higher allocation increase, the faculty
THE CHAIRMAN of the Committee
on the Economic Status of the Faculty
(CESF), however, disagreed with the
contention that student and faculty in-
terests are in conflict. Economics Prof.
Harvey Brazer said, "I don't like to see
it expressed as an issue of faculty ver-
sus students. The students have the
20
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AMRI IA R 9 I 5 rM
1919 1980
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If the leotard fits...
When President Carter took a stand against American
participation in the summer Olympics because of the Soviet
invasion of Afghanistan, the Gym-Kin Co. of Reading,
Pennsylvania found itself with 24,000 pairs of leotards and
skating dresses-all bearing the Moscow Olympic symbol.
Many of Gym-Kin's 3,000 clients canceled orders because
the new leotards seemed destined to sit on the shelves. But
when Gym-Kin managers found themselves with $500,000 of
worthless merchandise, they decided to stencil the word
"boycott" across the Olympic logo. "The reaction we are
abused, robbed, and starved by his beloved daughter."
Enraged, Kovatch brought a $50,000 suit against her
brother,. Bernard Gladsky, accusing him of erecting the
stone to slander her and hold her up to public scorn. "It was
done mostly in jest," Gladsky testified at the trial. "In
retrospect I think they were not the proper words to be
used." The stone and inscription stemmed from a dispute
between Gladsky and his sister over the care she gave their
father while he stayed in her home the years before his
death. According to the evidence in the case Gladsky had a
"rush job" done on the tombstone and he had had wanted
the marker in place before a bull roast at the church "so
opening of thel"Night Story" disco for a reported $20,000,
but the owner of the establishment says he has been
contacted by Canadian Embassy officials in Tokyo vho
don't want Trudeau to do the promotion. "I can't tell you
exactly what the officials' visit was about, but you should be
able to guess," said the disco's owner, Kichinosuke Sasaki.
On the inside
For a report on the U.S. Olympic Hockey Team's battle
with the U.S.S.R. squad, see the sports page. . . A review of
the John Mayall and Luther Allison concert appears on the
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