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Vol. XCI, No. 102 Copyright 1981, The Michigan Daily Ann Arbor, Michigan; Thursday, January 29, 1981 Ten Cents Ten Pages
WASHINGTON (AP)-Pres'fdent Reagan
abolished the last federal controls on oil prices
yesterday in the hope that bigger costs for con-
sumers will force more conservation in homes and
spur increased production by the industry.
As a result, motorists may pay 3 to 5 cents more
per gallon for gasoline in the days ahead, said
Energy Secretary James Edwards. Consumer
groups said the increase could be as much as 12
cents a gallon.
EDWARDS SAID the impact on home heating
oil prices would be minimal, if there was any at
all. Energy Action, a consumer group, said
heating oil prices could jump by more than 10 cen-
ts a gallon in February.
Edwards, a dentist by profession, readily admit-
ted he did not know the full impact of Ieagan's or-
der and, at one point, said he was "a little con-
fused" about some of the details.
"We did it because the president promised it in +
the campaign," Edwards said. "We think it's good
for America, and we have certainly studied it to 1
some extent. I'm the new guy on the block and I
must admit I don't have all the statistical data at
my fingertips that you may desire."
HE SAID, FOR example, he did not know how
much the industry might reap in additional
profits, or how many additional barrels of oil
might be produced as a result.
U.S. oil companies cheered Reagan's move.
Paul Premo, manager of petroleum regulations
for Standard Oil of California, said company
executives were "ecstatic." Conoco Inc. sait it
"applauds this major unshackling of the oil
Several industry analysts agreed with a
statement by Standard Oil Col. Ohio that "the
near-term impact on the consumer could be an in-
crease of 7 to 10 cents per gallon" of gasoline.
INDUSTRY SOURCES SAID CitiesService Co.
yesterday lifted wholesale gasoline prices by 1.5
cents a gallon in selected areas, Marathon Oil by a
penny a gallon,. Standard Oil Co. by 1.5 cents a
gallon, Triangle Oil by 2 cents a gallon, and
Ashland Oil by 1 to 2 cents a gallon depending on
These wholesale price rises should begin ap-
pOaring almost immediately at pumps where
competitive factors will allow dealers to charge
motorists higher prices.
REAGAN, IN.A statement, said, "Ending price
controls is a positive first step towards a balanced
energy program-a program free of arbitrary and
counterproductive constraints-one designed to
pronote prudent conservation and vigorous
The president said controls had held U.S.
production "below its potential, artificially
boosted energy consumption, aggravated our
balance of payments problems and stifled
"Price controls have also made us more energy
dependent on the OPEC nations-a development
that has jeopardized our economic security
Hostage homecoming AP Photo
Elizabeth Swift, a former Iranian hostage, is welcomed by friends and
neighbors at her home in Washington yesterday. Swift is holding her dog
Cinder in her arms. Most of the hostages arrived home yesterday. See story,
pU' in running
,r .mu -= -w
U.S. will not
arms, to Iran
By RON POLLACK
In the House of the Rose Bowl-winning
Wolverines, the story sounds familiar:
A number of individual athletes sweat
together for long hours in the process of
becoming a team.
,It is also the plot of The Winning
Team, a made-for-television movie that
is a football version of the Broadway
musical A Chorus Line.
AND ANN ARBOR is one of three
university towns being considered as
the filming site for the proposed movie
by Lorimar Inc.
Bob Scott, director of the state's film
and television commission, said
yesterday the California-based
television producer contacted him in
mid-December about the possibility of
filming here. Scott contacted Univer-
sity Vice President for State Relations
Richard Kennedy, who gave Lorimar a
positive response to the project pending
Other sites under consideration for
The Winning Team' are Austin, Texas
and Columbus, Ohio where the Univer-
sity of Texas and Ohio State University
are located, respectively, Scott said.
UNIVERSITY ATHLETIC Director
Don Canham has also been contacted
about the move and is awaiting further
information, according to Assistant
Athletic Director Will Perry.
The movie's plot centers on the
process of molding the individual
..See ANN ARBOR, Page 10
WASHINGTON (AP)-Secretary of
State Alexander Haig said yesterday
the United States will refuse to sell
military supplies to Iran and will not
turn over equipment the Tehran gover-
nment already has purchased.
Making clear the Reagan ad-
ministration will continue to view Iran
with great suspicion, Haig also said
American businesses should use the
"most careful caution" in future trade
HAIG INDICATED the United States
will abide by the terms of the
agreements that freed the 52 American
hostages, although he said U.S. officials
will want to be sure the Iranians are
living up to their obligations under the
agreement as well.
"The United States government will
fulfill its obligations in accordance with
both international law and the accepted
norms of domestic legal practice,"
Haig said at his first news conference
as secretary of state.
He cleared up one loose end not
specifically covered in the agreements:
the disposition of nearly $500 million in
military equipment purchased but not
shipped by the time the hostages were
seized on Nov. 4, 1979. Then-President
Jimmy Carter halted further shipments
of the equipment in retaliation for the,
"LET ME STATE categorically
today there will be no military equip-
ment provided to the government of
Iran, either under earlier obligations
and contractual arrangements, or as
yet unstated requests," Haig said.
The Defense Department reported
that Iran has paid for about $457 million
worth of U.S. military equipment that
was not delivered. Most of the gear is
spare parts for U.S.-built jet fighters,
tanks, helicopters and other weapons
sold to Iran before the overthrow of the
late Shah Mohammad Reza Pahlavi.
The revolutionary regime now in con-
trol in Iran has not requested shipment
of the equipment, and the subject was
not raised in the long negotiations
leading to the hostage release
See HAIG, Page 10
SECRETARY OF STATE Alexander Haig cocks an ear to a reporter's
question during a press conference yesterday. Haig ruled out any shipment
of U.S. arms to Iran although he said the U.S. would fulfill its obligations
under the agreement that freed the American hostages.
Halfway house owner
plans to close faci11ty
By DEBI DAVIS
Saying that "the state gave me a rot-
ten deal," the owner of one of Ann Ar-
bor's three remaining halfway houses
said yesterday he will close down the
state-supervised facility by March 1.
The Rev. Esque Wells, who owned
and operated the 506 W. William half-
way house, said he "had a nice, smooth
running house" until prisoners from
three recently closed halfway houses
were placed in his house by the state
"THEY (THE STATE) dumped those
men in my house and spoiled the image
of my house," Wells said. "Those men
from East Ann were nothing but
gangbusters," he said, referring to the
prisoners transferred from houses at
1122 and 1124 E. Ann and 1125 E. Huron,
owned by Louis Rome.
Both of the men charged with the ar-
med robbery of China Gardens
restaurant Saturday night are former
residents of Rome's halfway houses.
Tyrone Reid, one of the robbery suspec-
ts, had been transferred from there to
Wells' William St. house in late Decem-
The Rome houses were closed Dec.
31, after the staff, unhappy with
working conditions, walked out. This
occurred shortly after Timothy
Hughes, a resident of Rome's 1124 E.
Ann St. house, was charged with the
murder of an Ann Arbor cab driver.
MEANWHILE, Mayor Belcher, and
See LANDLORD, Page 2
By PAM KRAMER
Low and middle income parents of college
students may be able to receive extensive finan-
cial aid this summer for their children under a
recent addition to the federal Guaranteed Student
State Rep. Perry Bullard (D-Ann Arbor) in-
troduced legislation Tuesday that would authorize
the state student loan office to grant loan requests.
This will be the state's first local or federal loan
program offering aid exclusively to parents of
The program grants parents up to $3,000 per
student per year at 9 percent interest, according to
Dan Sharp, an administrative assistant to
BULLARD SAID he expects easy passage of the
bill and hopes the program will be operating soon
enough to make loans available for summer and
Sharp said the government will announce the
program's formal guidelines before July, possibly
as early as next month. He added that the income
level at which parents are no longer eligible for
the loan remains to be worked out.
The federal plan, established by former
President Carter late last year, requires each
state to create a loan authority to participate.
Sharp said he. did not know why it has taken so
long for the program to become better-knows to
states. He said Massachusetts was the only state
ready to implement the plan Jan. 1.
"WE KNEW ABOUT it because Perry reads the
Washington Post," Sharp said. "He picked up on a
story about it in the paper."
State officials have temporarily stopped accep-
ting applications for Michigan Direct Student
Loans because of an increased number of ap-
plications and the tight money market. Bullard
said he expects these problems to be cleared up by
"We'll be looking at what other measures we
may need to take to make more loans available,"
In the meantime, he said Guaranteed Student
Loans are still available.
IF THE Michigan Student Assembly expects University
administrators to listen to its suggestions, it better
learn who those administrators are. The Daily yesterday
received a copy of a letter sent to the LSA dean asking for
student participation in the review of the slated-for-
elimination geography department. The letter, written by
MSA member Shawn Goodman, was addressed to LSA
nfl n n Ri w rve Sarrv fnkre vou'rea little late. Although
The lone range cover-up
Clayton Moore may look like just any other joe without
his outfit-a plain black eye mask. But when he dons the
item, he magically transforms into the one and only Lone
Ranger. Actually, Wrather Corp., which owns the legal
rights to the Lone Ranger character, is disputing Moore's
right to pose as the Western marvel. Moore, who played the
ranger on TV for many years, had been making appearan-
ces as Tonto's best buddy, but Wrather has obtained a court
order barring him from making any more such appearan-
ces Sn who is enming to the rese Raltimore Demnerat
was answered by Mechanicville police, who activated Clif-
ton Park's fire siren. When volunteer firefighters learned
the fire was several miles away, they called the Saratoga
County Sheriff's Department in nearby Ballston Spa. Since
the Sheriff's Department operates the fire control office for
the county, they called the nearest station to the fire: the
Janesville Fire Department. Jonesville and Clifton Park
firefighters met each other at the scene. They were too late.
The fire was ,out when they arrived. A quick-thinking
supermarket employee put out the fire. Better late than
S I 1 .