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February 04, 1981 - Image 5

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The Michigan Daily, 1981-02-04

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The Michigan Daily-Wednesday, February 4, 1981-Page 5

Donovan approved

as labor secretary

WASHINGTON (AP) - Raymond
Donovan was approved as labor
secretary by the Senate yesterday,
overcoming persistent, unverified
allegations of ties to organized crime.
The vote was 80-17 to confirm
Donovan's nomination. He was the last
member of President Reagan's cabinet
to win approval.
ALL THE "NO" votes were cast by
Democrats concerned about the alleged
links between. Donovan and labor
racketeers, despite Donovan's own
denials and the FBI's failure to
corroborate a single charge.
Republicans countered that fairness
requried a vote to confirm Donovan,
especially since an extensive FBI probe
turned up nothing.
Donovan, a 50-year-old New Jersey
construction executive who served as a
campaign fund-raiser for Reagan, was
expected to be sworn in formally later

in the day at the White House.
"I HAVE A large responsibility to the
president and the American people," he
told reporters. "I now intend to get on
with that job and to meet that respon-
sibility."
Asked if he had any hard feelings
because his confirmation was delayed
after other Cabinet officers were con-
firmed, he replied:
"Not really. I think the problems of
the country are so great that I have to
put personal feelings behind me."
DONOVAN WATCHED MUCH of the
Senate's debate from the spectators'
gallery.
Several sources have alleged that
both Donovan and his contruction com-
pany have ties to labor racketeers and
organized crime figures.
The nomination was held up for more
than two weeks for an FBI investigation
which failed to provide confirmation of

AP Photo

Whoops!

A dozen parked cars are piled-up in a tangled mess of scrap metal as a result of a train derailment yesterday. Fifteen
cars of a Western Pacific train jumped the tracks in downtown Oakland, California, causing this mass of junkyard
material. No injuries were reported.

PROPOSED BUDGET CUTS REVIEWED:

any of the charges.
Sen. Orrin Hatch (R-Utah), ;
Donovan's chief defender, told the Sen-
ate that the nominee deserved confir-
mation after "the most thorough and
exhaustive background investigation
ever conducted by the FBI on a Cabinet
nominee."
Hatch, chairman of the Senate Labor
and Human Resources Committee,.:
went through the charges against
Donovan one by one, each time offering
the response that Donovan provided as
well as results of the FBI investigation.
Of Donovan's chief accuser, gover-
nment-protected witness Ralph Picar-
do, Hatch said, "Mr. Picardo has lived
a life of crime: He is the first person to,
admit it."
Sen John East (R-N.C.) said that'
voting against Donovan on the basis of'
allegations from convicted criminals.:
amounted to "giving a veto power to the
underworld on any potential nominee
that comes before the Senate."
But Sen. Edward Kennedy of
Massachusetts, the first Democrat toO
speak during the debate, said he would
vote against the nomination.
He cited as one reason Donovan's,
testimony that he was not told when a-
top employee of his firm, Schiavone
Contruction Co., was subpoenaed.
before a grand jury investigating,
alleged labor extortion.
"Surely, even if we fully credit Mr:
Donovan's testimony, we must believ
that a responsible construction firm
concerned about its integrity would be
managed so that grand jury appearan-
ces of high-level employees are repor'
ted immediately to the chief officer d4
the firm with responsibility in th,
relevant area," Kennedy said.

Mayors told of
urban cutbacks

House examines spending

From AP and UPI
WASHINGTON - Big city mayors
said President Reagan told them
yesterday that his drive to prune
federal spending means sharp cuts in
urban aid and major changes in a
program that provides money for cities
hard hit by recession.
"These people are serious about cut-
ting and we have to be serious about
reducing our expectations from gover-
nment and accepting and absorbing our
share of the cuts," said Indianapolis
Mayor William Hudnut III, president of
the National League of Cities.
MAYOR EDWARD Koch of New
York said Reagan promised, however,
that "those who are truly in need will
not be asked to suffer, but all others
hopefully will suffer equally."
Hudnut and others said they were
alarmed by plans for changes in the ur-
ban'development action grant program
begun by the Carter administration to
help revitalize distressed urban areas.
Reagan also met with black
congressmen who are worried that his
budget cuts will hurt the poor.
BLACK PEOPLE are dispropor-,
tionately represented in the ranks of
those hardest hit by inflation," said
Rep. Walter Fauntroy, (D-District of
Columbia), chairman of the
Congressional Black Caucus.
"We told the president that we are
gravely concerned that policies devised
to rein in inflation do not dispropor-
tionately burden the poor, the elderly,
and moderate income people."

The mayors said they learned that
the Reagan administration plans to
propose to pay for the urban develop-
ment action grant program with block
grants to cities or states, instead of
giving money to individual projects.
The city leaders worry that there would
be less money for the overall program
and competition for the available
money would be increased.
SUCH A CHANGE "would be a
devastating effect on us," said Mayor
Tom Bradley of Los Angeles. Hudnut,
who like Reagan is a Republican, said a
block-grant system would not work and
would gut the program.
Reagan consulted with the mayors
and lawmakers to get their views in ad-
vance of his nationally broadcast
speech on the state of the economy at 9
p.m. EST tomorrow and in a State of
the Union message to Congress Feb. 18.
Thirteen mayors met over lunch with
Reagan and his economic advisers, as
well as Samuel Pierce, secretary of
housing and urban development.
The president will visit Capitol Hill
today to talk with members of
Congress.
After their session with Reagan, the
mayors said the president left'no doubt
that urban programs will be cut, but
they said there were no specifics other
than the change for the urban develop-
ment action grants.
"The message we got loud and clear
is that the country's economy is in deep
trouble," said Mayor Pete Wilson of
San Diego. "Everybody's got to make
some sacrifice," added Bradley.

WASHINGTON (AP) - Members of
the House Budget Committee began
examining specific ways to chop
federal spending yesterday as a
Reagan administration list proposing
major cuts in social programs cir-
culated through Congress.
Even as government officials were
talking about budget trimming, the
House Ways and Means Committee
voted to raise the national debt limit to
finance the current budget deficit,
estimated to top $55 billion in 1981.
IN URGING THE increase in debt
limit, Treasury Secretay Donald Regan
and Budget Director David Stockman
told the Ways and Means Committee
government debt is expected to reach
the current limit of $935.1 billion within
a few days. The panel agreed to raise
the ceiling $58 billion.
Stockman called the request "unap-
petizing" but necessary, noting that
failure to raise the limit would mean
the government would lose its
borrowing authority.
As the House Budget Committee

began examining ways to slice the
budget, the chairman, Rep. James
Jones (D-Okla.) told his colleagues,
"We begin what may well turn out to be
the most painful political process
through which any of us will ever go."
FACING THE committee were 105
suggestions from congressional
economists on how to cut billions of
dollars from the budget and increase
revenues.
Meanwhile, details of some of the
administration's own tentative
proposals for slashing billions of dollars
from federal programs surfaced
yesterday.
The targets for possible trimming in-
cluded Social Security, import-related
unemployment benefits, extended
jobless benefits, Medicaid, food stam-
ps, public service jobs, farm-related
loans and energy development sub-
sidies.
THE PROPOSED "hit list" was draf-
ted by Stockman for consideration by
Republican leaders in Congress, which
must ultimately approve any budget

changes.
Administration officials have
cautioned that Stockman's list has not
been approved by the president, and
that a final package of proposed spen-
ding cuts will not be completed for at
least another two weeks.
Reagan, who has called for major
cuts in both the budget and federal
taxes to combat inflation, said in an in-
terview Monday that he still aims to
fulfill a campaign pledge to cut the
current budget 2 percent, or about $13
billion to $14 billion.

Thief claims $160
from Markley safe

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An unknown person or persons gained
entrance to the Markley dormitory
snack bar and made away with more
than $160 in assorted bills from the
snack bar's safe sometime between
1:00 a.m. Saturday and 4:30 p.m. Sun-
day, according to Ann Arbor Police Sgt.
Harold Tinsey.
Markley building manager Skip
Doria said when the safe was opened on
Sunday the "money was found
missing."

"To the best of my knowledge," he
said, "no suspects are in custody."
The snack bar's manager, Lynn
Driscoll, said, "I'd rather not talk about
it. (Publicizing the robbery) only en-
courages those who've been successful
n the past.
Driscoll did say she thought students
were involved in the incident because
there have been "rumors of keys
floating around for years." She would
not elaborate.

Approval of hazardous waste rules delayed

1

Ono

s

LANSING (UPI) - Concern over
Michigan's regulation of chemicals"
recently ruled safe by the federal
government forced the delay yesterday
of a House-Senate committee's ap-
proval of state hazardous waste rules.
Rules which would implement a 1979
law governing the transport and
disposal of hazardous waste fell short of
approval on a test vote in the Joint
Committee on Administrative Rules.
COMMITTEE chairman Sen. Doug
Ross said the 10-member committee
would consider the complicated hazar-
dous waste rules again in the next mon-
th.
But even lawmakers who support the
state's tougher regulation of dangerous
chemical wastes said some means must
be devised to quickly drop substances
deemed safe by the Environmental
Protection Agency from Michigan's
longer list of regulated materials.
Currently, several chemicals on
Michigan's proposed hazardous sub-
stance list have been dropped from a
similar federal roster. But no method is
lWVI Thc!

available to strike the chemicals from
the pending regulations.
WILLIAM LONG, an aide to Gov.
William Milliken, said the ad-
ministration is exploring the possibility
of issuing an emergency order which
would immediately - remove the
federally exempt substances from
Michigan's list.
Long told lawmakers who called on
Milliken to take a firmer stand on the

issue that legal advisors were uncertain
if the situation qualified as an
emergency.
Meanwhile, state Department of
Natural Resources staff members war-
ned lawmakers they are still uncertain
if Michigan's tougher regulation of
wastehaulers, landfills and in-
cinerators will meet federal approval.
SEN. JOSEPH Mack (D-Ironwood)
complained Michigan has no pressing
need to implement tougher rules than
the federal government and said the

cost to industry of increased inspection
and strict disposal standards is-
prohibitive.
"Are we having people dying or being
killed or wiped out because we don't
have these rules?" Mack asked.
Rector said when the legislature ap-
proved the law it believed tougher
standards were needed to deal with
chemicals unique to Michigan in order
to prevent massive contamination
problems - such as the 1973 PBB
disaster - from occurring again.

CONCERT of J.S. SACHAnd P.D.Q. RACH
Friday, February 6-8:00 p.m.

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