See Editorial, Page 4
Ninety-three }Years of Editorial Freedom
Cloudy with possible snow flurries,
and a high near 300.
.ol. XCIII, No. 79 Copyright 1983, The Michigan Daily Ann Arbor, Michigan-Friday, January 7, 1983 Free Issue Ten Pages
By DAN GRANTHAM
Mayor Louis Belcher may have gained
he votes he needs to assure that the
ity Council will place the repeal of the
$5 pot law on the city's April ballot.
Councilmember Joyce Chesbrough,
(R-Fifth Ward), said yesterday that she
will vote to put the repeal on the ballot,
giving Belcher the seven votes he needs
to place the measure before the city's
voters in April.
COUNCIL approval of the proposal is
the only method left for tougher drug
law proponents, after a petition drive
ailed to raise enough signatures. Sup-
porters of the petition drive gathered
only 2,000 of the 5,200 signatures needed
to place the repeal on the ballot.
Chesbrough said she is supporting the
measure because she thinks "referen-
dums are always a good thing."
Chesbrough said she would have
See MAYOR, Page 6
WASHINGTON (AP) - In an un-
commonly pessimistic outlook for 1983,
the Reagan administration is predic-
ting the slowest - recovery from a
recession since World War II, with
unemployment sticking above 10 per-
The forecast, not publicly released but
confirmed yesterday by administration
sources, is more bearish than nearly all
the major private forecasting firms and
marks a reversal from the ad-
ministration's decidedly optimistic -
but wrong - economic predictions of the
prior two years.
IN 1981 and 1982, the Reagan ad-
ministration had been ridiculed by
private economists and the financial
community for making rosy predictions
beyond the range of reasonable expec-
tation. this time, President Reagan's
new chief economist, Martin Feldstein,
has insisted that the administration
issue an honest forecast to regain its
The forecast, prepared as part of the
fiscal 1984 budget plan President
Reagan will send Congress Jan. 31,
predicts the economy - after adjusting
for inflation - wil grow at an anemic
rate of only 1.4 percent on average for
all of 1983, compared with 1982.
By comparison, first-year recoveries
from the previous seven post-war
recessions typically have shown growth
rates of 4 percent or more.
BECAUSE economic growth is ex-
pected to be so slow, unemployment is
predicted to decline only slightly from
its current level, now at a 42-year high
of 10.8 percent.
At his news conference Wednesday
night, Reagan said the economy "is
getting better, not getting worse," but
he conceded unemployment would be
slow to recede.
According to the forecast, the jobless
rate will remain above 10 percent by
the fall of 1983 and above 9 percent in
the presidential campaign season in the
fall of 1984.
The unemployment rate was 7.4 per-
cent wehn Reagan took office. Accor-
ding to the new administration
forecast, unemployment will not recede
to 7 percent until 1988.
THE ECONOMIC outlook suggests
the administration has abandoned its
promise that it can promote strong
economic growth, lower unem-
ployment, keep inflation down and
balance the budget at the same time, as
its 1981-82 forecasts had indicated.
As for inflation, the administration
expects it to remain around 5 percent in
1983, about the same as in 1982.
The slow-growth forecast means
future budget deficits, which Reagan
once promised to eliminate by 1983, will
swell to record proportions, in each of
the next five years unless Reagan
"abandons his opposition to tax in-
creases and military spending cuts. Of-
ficials now say the red ink will grow
from more than $200 billion in 1984 to
See ADMINISTRATION, Page 6
Job rush *
A crowd estimated at 7,000 pushes toward the door of Chicago's Washington Park field house yesterday to apply for
3,800 temporary jobs being offered by the city.
Dow hits another all-i
From UPI and AP
NEW YORK- The Dow Jones industrial average
surged 26.03 points to an all-time high of 1,070.92
yesterday in a stock market buying stampede that
prompted analysts to say the recession has ended.
Most other market barometers also hit new highs in
the 129 million-share trading surge that started with
speculators and ended with cash-laden institutions
buying frantically to avoid missing the bull market of
The Dow Jones average of 30 stocks, which eased
1.19 Wednesday, now has climbed 294 points since hit-
ting a 27-month low of 776.92 on Aug. 12 last year.
THE BROADER-based New York Stock Exchange
index surged 1.95 to an all-time high of 83.71 and the
price of an average share increased 79 cents. Stan-
By DAN GRANTHAM
By what could be described as a
stroke of luck, campus security and
Ann Arbor police were able to ap-
prehend four suspects in connection
Owith two Wednesday night dorm rob-
The first robbery took place at South
Quad a little after 8 p.m., according to
Ann Arbor Police Sergeant Harold Tin-
sey. Tinsey said a dorm resident saw
two men running from a room with
some "goods" and began to chase
ALTHOUGH the student was unable
to catch the men, he recovered some
0music tapes the thieves had dropped.
The student returned the tapes to the
residents who had been robbed. The
victims then alerted campus security
and the police. * * *
The second robbery took place at Students
about 9:30 p.m. at West Quad. Tinsey good star
See 'U', Page 6
dard & Poor's 500-stock index climbed 3.31 to 145.27, a
Advances routed declines 1,431-305 among the 1,956
issues traded at 4 p.m. EST.
The Big Board volume of 129,410,000 shares, up
from the 95,390,000 traded Wednesday, was the ninth
heaviest in the NYSE's 190-year history and the
biggest since a record 149,385,480 changed hands on
SINCE MANY basic industry stocks scored big
gains, "I would have to think the market is saying the
economy has turned the corner," Newton Zinder,
E.F. Hutton vice president, said.
"With car sales improving recently, housing starts
picking up and retail sales a little better, it is clear to
me the economy has turned to the upside," said
Harold Ehrlich of Bernstein-Macauley, which
manages $2.7 billion in pension fund money.
Basic industry stocks such as chemicals and
metals were especially strong, which many market
watchers saw as a sign that professional investors
believed recovery would soon begin to spread
through the economy.
Oil stocks, battered the past two years, were also
particularly strong as investors went bargain hun-
ting. Also, some traders were hopeful Saudi Arabia
would cut production to bring stability to the in-
Composite volume of NYSE issues listed on all U.S.
exchanges and over the counter at 4 p.m. totaled
143,541,300 shares, up from the 108,817,300 traded
' profs play
high court battle
LANSING (UPI) - The new governor
of Michigan, the old governor of
Michigan, the Michigan Supreme
Court, and two University law
professors are about to embroil them-
selves in a bitter legal battle.
The latest word on the upcoming fight
comes from two fronts: The first from
Lansing, where the state Supreme
Court yesterday scheduled a rare
Saturday morning hearing on whether
it should give immediate consideration
to the proposed ouster of Justice
Dorothy Comstock Riley.
GOV. JAMES Blanchard wants Riley
out and University Law School Prof.
Wade McCree to replace her.
The second comes from Traverse
City, where former Gov. William
Milliken has announced that he intends
to intervene legally on the behalf of
Riley, his embattled appointee.
Milliken said he wants University Law
School Prof. James White to represent
him in the upcoming battle.
Riley was appointed last month by
former Gov. Milliken to replace the late
Justice Blair Moody Jr., who died last
fall shortly after winning election to a
new, eight-year term.
MILLIKEN argued that Riley can
serve until after the next general elec-
tion in November 1984. Blanchard and
Kelley said her right to serve expired
with Moody's old term at the end of last
White could not be reached last night
for comment on the case which indirec-
tly pits him against McCree, a fellow
faculty member. McCree has not of-
ficially been asked to replace Riley
should she be removed, but said his
name is being "tossed about" by the
Tomorrow's 10:30 a.m. hearing,
which was requested by Riley's attor-
neys, will be limited to the issue of
whether a "quo warranto" suit filed by
Attorney General Frank Kelley should
be yanked from the Michigan Court of
Appeals and taken up by the Supreme
Court on an expedited basis.
BOTH KELLEY and Gov. Blanchard
have urged rapid action on the issue,
but Riley herself has opposed it,
arguing the suit lacks legal merit and
has not been properly argued at, the
lower court level.
Both sides likely will be given a half
hour to present their points of view.
Riley has so far refrained from par-
ticipating in high court decisions
relating to the "quo warranto" challenge
MILLIKEN yesterday said he has
requested permission from the
Michigan Court of Appeals to make a
"friend of the court" argument on
See COURT, Page 6
Daily Photo by SCOTT ZOLTON
and book rush
go through the ritual of purchasing textbooks at Ulrich's yesterday. As usual, students are anxious to get a
rt on this term's assignments.
Sex through the ages
F YOU THOUGHT books about sex were a phenomenon
of the '80s, think again. A century ago, when reaching
out to touch someone usually brought a slap, a
prominent doctor went on a six-week honeymoon and
fashioned a book on sex that touched all bases. It's a far cry
from the explicit sex stories and pictures commonplace
today, but it was apparently an instant success. Dr. John
Kellogg, who founded the flaked cereal industry in Battle
the Republican party for the presidency he would give up
Reeling for dollars
TWO HAINES CITY, FLA. fishermen didn't catch any
fish Monday, but they did pull in a $1200 40-by-30 foot
red and yellow helium balloon. Madge McDonald and her
son Allan were fishing on quiet Lake Marion when the pair
saw the blimp-like balloon splash near shore. They
maneuvered across the water and dragged the sagging,
soggy thing aboard. Neither knew exactly what they had,
but they telephoned a radio station and discovered the
$1,200 balloon had been the subject of a search that even-
tually involved the Air Force. The 40-by-30-foot helium-
Not guilty due to paperwork
F ORGET TO REGISTER Fido? Chugging down a beer
on the street? You're breaking the law in San Jose, but
don't worry-paperwork may well come to your rescue. At
least 350 people who haven't paid fines for violating city or-
dinances can expect legal pardons without penalties, Santa
Clara County court officials said. "Something had to give,"
said Pat Tralongo, acting court administrator. "We had a
backlog, and we had to set priorities. Our priorities are on
the heavy violations. We just can't do the rest." The
problem is a scarcity of clerks, partly the result from Por-
the Republican party for the presidency he would give up
his post. He added that he would not quit his job to cam-
paign for the nomination.
Also on this date in history:
* 1910-University women announced they wanted an of-
ficial headgear carrying out the same class distinction as
the men's toques. Most favored a trim little tam o'shanter.
" 1923-Ignac Paderewski, Polish master pianist, per-
formed before a capacity crowd at Hill Auditorium.
* 1955-A poll asked University students what they would
change if they could change one thing about the University.
A majority of the students responded that they like the
Unriversity iust the way it w as. Q