Fog slowly lifting and
becoming partly sunny.
High in the lower 50's.
/ol. XCI, No. 121
Copyright 1981, The Michigan Daily
Ann Arbor, Michigan-Friday, February 20, 1981
prompts bomb threat
Daily Photo by BRIAN MASCK
STUDENTS CROWD into the Regents meeting yesterday to hear arguments concerning possible University
investment in defense industries and proposed cuts in the Department of Recreational Sports.
Dorm rates to rise,
by 9.8%o next year
By BARRY WITT
and BETH ALLEN
A bomb threat briefly interrupted
yesterday's Regents meeting at which
protesters argued against possible in-
vestments in the defense industry and
proposed budget cuts in the Depar-
tment of Recreational Sports.
University President Harold Shapiro
interrupted the meeting at 2:15 p.m. to
report that his office received a threat
15 minutes earlier that a bomb would go
off in the administration building at
2:30 p.m. _
SHAPRO INVITED anyone who
feared the threat was real to leave the
building, but the more than 100 spec-
tators in attendance at the time only
At approximately 2 p.m., the Daily
received a call from an unidentified
woman who said she had told the ad-
ministration "We're going to blow up
the Regents before they blow up the
The woman's remark was in referen-
ce to a financial consultant's recom-
mendation that the University place
five firms who manufacture weapons
on its master list of common stocks.
THE NATIONAL Bank of Detroit's
full report on University investments
was tabled for approval until today.
President Shapiro recommended that
the board delay action on the proposal
to allow members of the University
community to air their views on the
subject during the "Public Comments"
section of the meeting yesterday after-
Most of the 90 students who demon-
strated outside the Administration
Building before the meeting returned in
the afternoon to inform the Regents of
their opposition to investing in defense-
Jon Feiger, MSA vice president for
legislative relations, told the Board that
"it is morally wrong for the University
to invest its funds in any military cor-
FEIGER, WHO RECEIVED a one-
minute standing ovation at the con-
clusion of his speech, said "The Univer-
sity should maintain moral and ethical
standard in its investments."
The five companies named in the
NBD report - Loral Corporation, San-
ders Associates, General Dynamics
Corporation, McDonnell-Douglass Cor-
poration, and Northrup Corporation -
are involved in producing nuclear
weapons systems and fighter planes for
the United States and foreign countries.
Feiger said he objects to the Univer-
sity investing in companies "commit-
ted to the production of weapons for
THE BORAD WILL either vote today
or table discussion on the proposal.
Regents yesterday were reluctant to
comment on the prospect of investing in
defense industries, saying that they
would prefer to hear the University -
executive officers' positions first.
Regent Thomas Roach (D-Saline) did
say, however, that he does not agree
with the argument that these invest-
ments are not proper.
"I don't agree that the way to peace is
through reducing defense," Roach said.
ROACH ADDED THAT only in the
most extraordinary cases, such as
South Africa, should the Regents con-
sider moral questions; "otherwise, our
investment policy is very neutral."
Roach gave the analogy that if a group
were against air pollution, then they
could similarly protest against the
University investing in General Motors.
The Regents will turn to the executive
officers this morning for advice on the
proposal. Vice President and Chief
Financial Officer James Brinkerhoff
See PROTESTERS, Page 6
By BARRY WITT
Housing costs for traditional residence halls will increase
9.8 percent next year, the University Regents decided at
The Regents unanimously voted in favor of the recommen-
ded rate hike - raising the cstof livingin a-ouble room at a
traditional dormitory to $2281.89, an increase of $242.04 from
OTHER INCREASES recommended by the Housing
Division and its Rate Study Committee and approved by the
Regents include 6.2 percent for Oxford Housing, 17.1 percent
or Fletcher Hall, 13.1 percent for Baits Houses, and 9.95 per-
ent for North Campus family housing.
The Housing Division's report to the Regents said the in-
creases were necessary to keep up with inflation. "The
proposed structure will add no new services and require us
to remain frugal in our operations," Housing Director Robert
Increases in costs will actually exceed 10 percent, Hughes
said, but certain capital improvements made in the last few
years should help defray the total increase. The Housing Of-
fice's slide presentation to the Board at yesterday's meeting
showed-insulated windows that have been installed in many
dormitories and the new roofing added to some.
BY FILLING residence halls to their maximum potential,
costs per student are also kept down somewhat, Hughes said.
Since 1974, when the halls were thought to be filled to
capacity, the total number of students in the same residence
halls has grown by 628.
Rates for living in a traditional hall single will increase
form $2462.95 to $2704.99, and the cost of living in a triple will
be $2011:46, $179.57 more than this year.
Economy doubles will cost $1928.95 per student and
the cost of Economy Triples will be increased to $1799.61.
Daily Photo by BRIAN MASCK
ADDRESSING UNIVERSITY REGENTS at yesterday's meeting, local
minister Richard Singleton called the possibilty of 'U' investment in the
defense industry, "quite frankly immoral."
Federal cuts loom
Financial aid in jeopardy
Reagan's plans pose
threat to city, 'U'
By NANCY BILYEAU
University officials fear enrollment may drop when
students find it impossible to pay future tuition bills due
to President Reagan's proposed reductions in Federal
financial aid announced in Wednesday night's speech.
Federal funds used for Basic Educational Opportunity
Grants, Guaranteed Student Loans, National Direct
Student Loans, and Social Security student aid will all
undergo cutbacks and readjustments which may go into
President Reagan's hiring freeze could hurt
job prospects of college students who are
planning on a career in the federal gover-
nment. See story, page 5.
over the next four years;
" A parental income cut-off point will be placed back
on BEOG request forms;
* National Direct Student Loans will be phased out
over the next four years, taving the federal government
approximately $15 million sa Michigan alone, and;
* All students applying for Guaranteed Student Loans
may have to have a cost analysis assessing parental in-
come, number of other siblings in college, assets, and
Another option being considered is the elimination of
the federally subsidized interest rate the government
now pays while students are in school.
It's still too early to tell how Reagan's budget
proposals will directly affect different areas of the
University, University President Harold Shapiro said
Shapiro added that the changes planned by Reagan for
student financial aid worry him more than any-other
targeted budget areas.
THE UNIVERSITY can not fill the gaps left by the
federal government, Shapiro said. "Someone's going to
have to make it up."
See STUDENT, Page 2
President Reagan's'proposed budget
cuts, announced in his speech Wed-
nesday, could have substantial impact
on the economic lives of members of the
University and city communities.
University officials are primarily
worried about cuts in student financial
aid and research money which could
occur if Reagan's proposals are adop-
BUT UNIVERSITY President Harold
Shapiro said yesterday he does not yet
have enough specific information to
determine precisely how the University
could be hurt.
"Student aid has me most concer-
ned," Shapiro said, adding that it won't
be clear for some time which students
would be affected by the proposed
reductions in loan money.
Research funding is also in danger.
SOCIAL AND behavioral research
will be especially hard hit, according to
Economics Prof. Saul Hymans. One of
the University's largest research grant
suppliers is the National Science Foun-
dation, and Hymans said that agency's
funds will almost certainly be cut.
University Vice President for
Research Charles Overberger said he
believed NSF had the best chance of
surviving the budget cuts.
Overberger also said Energy Depar-
tment research funds would probably
PRESIDENT Reagan has also
See REAGAN'S, Page 12
effect by Fall 1981, financial aid officers said yesterday.
ACCORDING TO University and state financial aid of-
ficials, Reagan's proposals may take the following
" Financial aid secured through Social Security
benefits, which supplied as much as $2300 a year to
30,000 Michigan students last year, will be phased out
F -TO DAY-
story was compiled from
by Daily staff writers Debi
Julie Engebrecht, Julie
... says impact of cuts unclear
Hinds, and Janet Rae.
- 900 skiers cover the course on foot, running along the high-
cuse was that he was dealing with "enormous other college
debts," said his spokesman Edwin Dale. How soon they
Daily break forget.
ODAY'S ISSUE of The Daily will be the last one Volcanic vicissitude
before midwinter break. Our next issue will be Blackouts and volcanos have some
Tuesday, March 3. Meanwhile, forget the books seems. Nine months ago, Mount St. He
and pretend it's spring. Ejnorthern Idaho, forcing residents insi
ething in common, it
elens rained ash overj
ide. Now, officials at
Tuesday evening. Capt. Patrick Flynn of the fire depar-
tment filed a report saying that the baboon reached from its
cage and pulled the alarm. Flynn said firemen confronted
the baboon, but "he wouldn't admit it." University
spokesman Franklin Loew said, "It's not inconceivable
that a baboon could have pulled a fire alarm because they
can unlock their own cages." But Loew said he checked it
out and found that a lab attendant was moving the cage in
which the baboon was being held when the cage bumped in-
to the wall-mounted fire alarm, setting it off. LI
I1/rv'moaer len 't tnltaviae Aho ttar
900 skiers cover the course on foot, running along the high-
way and carrying their ski poles. C
Charles Lipsett will certainly think twice the next time he
wants to take a nap on the Missouri-Pacific railroad tracks.
Lipsett, of Bossier City, La., was found alongside the tracks
off the Louisiana One after a crewman spotted his pillow
and stopped the train. Lipsett was taken to a local hospital
where he was treated for minor cuts and bruises. A sheriff's
spokeswoman said that he had been asleep on the tracks
i h .. nilni... a . Ma i 1ane a _aa aa 41,_fnn -_ .. _ .. -l
Do asl say ...
Wnnr Thfrat nre t nr+1,Tavid Rtarkman is himself a
Kootenai County Memorial Hospital report an unusual baby
boom-in the ninth month after the devastating May 18
erntion of the volcano. The hospital's 12-bed maternity