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 INDIVIDUAL THEATRES InriAedo ibe Srinking1-970 n A FILM BY AK IRA K UROSAWAII THE SHADOW WAR RIOR (R) THURS, FRI: 6:30, 9:15 WED: 12:50, 3:45, 6:30, 9:15 WITH THIS ENTIRE AD - one odmisson $2 00 any film Good Mcin t h fvrsEvs Valid thru 2/5/81 M A ROABERT ALTMAN FILM! LAST 9 DAYS! THURS, FRI: 6:30, 8:30 1 W ED: 12:20, 2:20, 4:30, 6:30, 8:30 COMING FEB. 13th "Incredible Shrinking Woman" -LILY TOMLlN- 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.