Ninety-One Years of Editorial Freedom j:11t t Mfitttga l3 lahll! BREAKTHROUGH 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 Ten Cents Twelve Pages mw F. Students crowd Regents meeting Investment controversy 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. 0 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 chuckled. 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 world. 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- noon. 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- related industries. 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- porations." 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 human destruction." 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 yesterday's meeting. 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 this year. 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 Hughes said. 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." I 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 other factors. 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 yesterday. 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- ted. 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 drop sharply. 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 form: " 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- This reports Davis, story was compiled from by Daily staff writers Debi Julie Engebrecht, Julie Shapiro ... 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 Track-napper 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 I