The Michigan Daily-Saturday, January 9, 1982-Page 3 U.S. settles AT&T, IBM anti-trust suits Reagan may sell federal lands WASHINGTON (AP) - President Reagan pondered possible 1983 tax in- creases yesterday as administration of- ficials 'proposed that he sell land, tim- ber, and other federal assets to narrow the budget deficit. The plan calls for sale of relatively small plots of federal land in urban areas to raise $2 billion in 1983 and 1984. Total federal holdings of this type of land are worth about $11 billion. PRESIDENTIAL Counselor Edwin Meese said Thursday the ad- ministration is considering such sales. He suggested the money be put into a separate account to retire existing federal debt rather than be counted in the 1983 budget as a way to reduce future deficits. As another money-saving move, the administration was reported to be c on- sidering reductions or delays in cost-of- living increases in federal benefit programs other than Social Security. Estimated savings would be as much as $6 billion in fiscal 1983, which begins Oct. 1. Administration sources, asking that their names not be used, said the president is prepared to seek at least some new tax increases as part of the 1983 budget he will propose to Congress next month. However, the size of the tax package and the types of increases were still under discussion, they said. DEPUTY WHITE House press secretary Larry Speaks refused yesterday to discuss any of the proposals under study. "We're not going to conduct the president's decision-making in a fishbowl," ie said. Reagan already has decided to propose $31 billion in cuts in social welfare and other domestic programs.. but most of those savings will be offset by his plan for a sharp increase in the defense budget. As- a result, Reagan faces a record- deficit of nearly $110 billion next year unless he acts to raise taxes or other revenue sources, according to ad- ministration estimates. THE PRESIDENT, who met yester- day for the second day in a row with his senior economic advisors, frequently has expressed reluctance to raise taxes. However, his economic advisers-' have formed a solid front in favor of at least $10 billion in new taxes for 1983, primarily by narrowing tax "loopholes," sources said. From AP and UPi WASHINGTON - The American Telephone and Telegraph Co. agreed to sell its 22 Bell operating com- panies, worth an estimated $80 billion, in the settlement yesterday of the government's 7-year-old an- titrust case against the world's largest corporation. Only hours later, the Justice Department dropped a 12-year-old suit against International Business Machines, Inc., thereby clearing the slate of the biggest antitrust cases inherited by the Reagan ad- ministration. ASSISTANT Attorney General William Baxter said the agreement with AT&T will mean more com- petition in the telecommunications industry. But he conceded that local phone rates are likely to go up in those areas served by the Bell cor i- panies which AT&T must divest within 18 months. The operating companies com- prise about two-thirds of AT&Ts assets. Meanwhile yesterday the chair- man of Michigan's Public Service Commission said the settlement of the AT&T case could have a "highly" unfavorable" impact on Michigan consumers. A SPOKESMAN for Michigan Bell Telephone Co., Lee Lindberg, declined to speculate on what im- pact the agreement would have on rates for the company's three million customers. Baxter, the department's antitrust chief, relayed to a federal court in New York that he had concluded the separate case against IBM, originally brought during the John- son administration was no longer appropriate. That suit sought to break up the computer firm on grounds that its pricing' and marketing policies discouraged competition, but since 1969 the in- dustry has seen enormous growth and a proliferation of competitors. 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'"' r M; Grain shortages reported in Poland WARSAW (AP) - Poland's martial law regime reported severe grain shor- tages yesterday, indicated military rule will continue for some time, and said a Solidarity leader will be tried for urging that government officials be hanged. The head of the Communist Party's Warsaw province branch, Jerzy Boleslawski, warned that "political op- ponents continue to act, and their weapons are rumors, lies, and leaflets often calling for resistance," according to Warsaw radio broadcasts. RADIO WARSAW said daily pur- chases of grain were running betwen 250 and 300 tons, "far short of the coun- try's requirements despite indications Council recommending university rec- that there is plenty of it in the coun- tors "create prerequisites for resuming., tryside." and continuing lectures by mid It said farmers had sold less than half February under martial law. the grain they had contracted for and The broadcast and another tran- were holding back because they regar- smission indicated the state of ded grain "as the safest currency, par- emergency imposed Dec. 13 would con- ticularly in view of the promised price tinue at least another five weeks, and. reform." that censorship would remain in force.. Deputy Premier Jerzy Czdowski was According to the radio telephone ser- quoted as saying the most rampant vice will resume tomorow in all provin- form of speculation at the moment was cial capitals. But it noted that "censor- hoarding in anticipation of price in- ship bodies set up under martial law creases. He said the government would have the right to control and interrupt deal with the issue next week. telephone conversations in order to THE RADIO also broadcast a com- prevent their use for activity' that munique from the ruling Military threatens the security of the state. ..x.:: ::x ., ... <": :":: Solidarity will not be crus hedSays member v " Nation's unemployment soars to 8.9% m December