Ninety- Three Years
of
Editorial Freedom

C I
tic

Sitr

43IaiI

Middling
Cloudy today with a high in the mid-
30s.

Vol. XCIII, No. 114 Copyright 1983, The Michigan Daily Ann Arbor, Michigan - Thursday, February 17, 1983 Ten Cents Ten Pages

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Budget

i

error
leaves4 U'
Hospital
in black
By GLEN YOUNG
While the rest of the University has
been forced to cut corners and slice
budgets, University Hospital officials
have found themselves with an extra
$500,000 and nothing to spend it on.
The excess is the result of a budget
miscalculation by hospital. ad-
ministrators, according to a memo
from John Forsyth, the hospital's in-
terim chief operating officer, the
hospital anticipated a salary raise for
faculty retroactive to Sept. i. But the
University's salary program did not
take effect until Jan. 1.
THE MEMO says the money must be
used "for one-time expen-
ditures . .. that will produce
See BUDGET, Page '5-
Gay rigi
By SHARON SILBAR
The future .of gay rights on campus
could be decided next week, and the
decision could be based on a potential
loss of military aid.
At the next executive officers
meeting, Virginia Nordby, head of the
University's affirmative action office,
will recommend whether or not the
administration should approve a
proposed Regental by-law forbidding
discrimination based on sexual orien-
tation.,
NORDBY REFUSES to discuss the
issue or the results of her analysis of the
by-law's legal implications.
Officials to
Downtown

Industry
surge hints
at recovery

AP Photo

I'd walk a mile for this camel
Toronto Zoo keeper Ron Gilmore got a warm, wet welcome yesterday from Libby, an Arabian camel. Libby, who is in
training to walk around the zoo and let visitors pet her, showed she's quickly learning her lessons.


F

By JACKIE YOUNG
City officials yesterday began the
process of condemning the Downtown
Club, which was officially shut down
Tuesday when utility companies turned
off their services because the bills were
not being paid.
William Hall, owner of WLW Proper-
ties, which owns the building, said the
building costs him $7,000 a month to run
but rents from the tenants were only
. bringing in around $4,000 due to a dwin-
dling occupancy and the present high
vacancy rate in residential housing.
Hall said a city building department
official will go through the Club today,
and if any remaining tenants are found,
Hall will be fined $500 a day because the
building no longer meets city building
codes.

hts hinge
"The basic problem is that (gays)
have asked me to give them some ad-
vice, and it would not be appropriate for
me to pre-indicate (the recommen-
dation) one way or another," she said.
But chances are good Nordby's
recommendation will depend on the ef-
fects the proposal would have on
military recruitment.
THE CONNECTION between the
non-discrimination clause and military
recruiting is as follows:
According to the Department of
Defense policy, "Homosexuality is in-
compatible with military service, and
Department of Defense policy requires
condemn
Club
On January 4, tenants of the Down-
town Club were given a "notice to quit"
requiring them to find another residen-
ce in 30 days.
Hall said most of the tenants told him
they had places to go, so he saw no need
to go, through the lengthy legal process
that would officially require tenants to
leave the building.
"Why haul tenants to court when they
said they were leaving?" he said.
But councilmember Lowell Peterson
(D-1st ward) said "none of the tenants'
rights have been respected" and that
the " 'notice to quit' is not a legal
notice."
Peterson said "a lot of people are
scrambling for some place to stay."
"It's not. easy to, find low income
See DOWNTOWN, Page 7
G responses
rteo-Nazis
LAST MARCH 20, the neo-Nazi group
demonstrated outside the Federal
Building on East Liberty. The group
was confronted by a crowd of about
2,000 people and a minor riot erupted.
Tom Hayes, a member of the Inter-
faith Council for Peace, said his group
is "strongly divided between those who
think we should do something and those
who think this would give (the S.S. Ac-
tion group) more credence than they
actually have."
The council, which last year co-
See LOCAL, Page 2

on Pen
prompt separation of homosexuals.
(Their) presence in the military en-
vironment ... seriously impairs the
accomplishment of the military
mission ..."
Colonel John Courte, chairman of the
Army Officer Education Program on
campus, said that homosexuals aren't
the only group of people that the
military discriminates against.
"WE DISCRIMINATE on the basis of
age, physical fitness - it is the same
kind of thing. Homosexuality (like
these other characteristics) is incom-
patible with military service," he said.
Nevertheless, if the University adop-


/tagon
ts the non-discrimination by-law, it
would have to answer to the potentially
contradictory practice of allowing
military recruiters on campus while
maintaining a policy which outlaws
discrimination based on sexual
preference.
University General Counsel Roderick
Daane said that passage of the by-law
"would have implications for
educational programs such as ROTC,"
but was not prepared to make any fur-
ther comments on the case.
If the administration and Regents
See 'U', Page 7

From AP and UPI
WASHINGTON - Production at the
nation's factories and mines grew a
hefty 0.9 percent in January, and new
housing construction skyrocketed a
record 35.9 percent, the government
said yesterday. The twin reports were
hailed by economists as strong signals
the long recession is over.
At the same time, Federal Reserve
Board Chairman Paul Volcker
promised Congress to try to boost the
nation's money flow enough to en-
courage recovery without rekindling in-
flation.
The increase in industrial production,
only the second since July, was fueled
in large part by a boost in the output.of
cars and defense and space equipment,
the Fed reported. December's output
was revised upward to a small 0.1 per-
cent increase.
IN THE second report, the Commer-
ce Department said new home con-
struction last month reached its highest
level since 1979. Housing starts in
January were up 96 percent from the
same month one year earlier.
The change "is another important
signal that recovery is in progress,
Tresury Secretary Donald Regan said.
"Historically, the upturn in industrial
production has marked the end of
recessions."
Allen Sinai, senior economist at the
consulting firm of Data Resources Inc.
in Lexington, Mass., said, "We are
already in the early stages of a
recovery." The recession, he said, en-
ded in November.
MICHAEL EVANS, chief economist
Panel:
should r
own res
BY LISA CRUMRINE
University schools and colleges
should be responsible for monitoring
the non-classified research projects of
their own faculty, the Research
Policies Committee recommended
yesterday.
There are currently no guidelines on
how non-classified research at the
University should be monitored.
THE COMMITTEE'S recommenda-
tion will be presented to the faculty
Senate Assembly at its March meeting.
Debate centered on whether the
committee should keep an eye on the
schools itself or whether a group should
be formed to do so, said student com-
mittee member Henry Rice, who did
not attend yesterday's meeting.
Rice said he was disappointed with
the committee's decision. "There's a
lot of room for discrepancy between
schools. It's not a very satisfying
solution."
TOM MARX, one of three student
committee members who voted against
the recommendation, said he favored
having a central committee to oversee
all University research projects.
"First of all, there's no guarantee
there will be any student representation
on the committees within each school,"
Marx said.

Volicker
... will increase money supply

in Washington for McMahan, Brafman,
Morgan & Co., cautioned against get-
ting "too excited" about the prospects
for a strong pickup in the economy.
"The numbers are not enough for me to
say it's going to be more than an
anemic recovery."
Volcker, appearing before the Senate
Banking Committee, said the Fed's
Qpen Market Committee expects a
much more modest rebound than those
that have followed other post-World
War II recessions.
He promised the Fed would try to ac-
See INDUSTRY, Page 2'
h 0 0 -s
no-nitor
earch
"Secondly, the administration gets
all power of appointment in selecting
the committee to assess the adequacy
ofi the monitoring procedures, and
there's no by-laws or procedures yet
defined," he said.
BUT SEVERAL faculty committee
members backed the decision.
The recommendation was a good
compromise between committee mem-
bers who wanted no regulations at all
and those who supported a guidelines
committee, said committee member
Charles Beck, a biology prof.
"I think we made a good move
yesterday morning," added
Engineering Prof. George Carignan,
also a committee member.
AT THE MEETING, the committee
also decided to add a sentence to the
University's research application form
reminding applicants of the non-
classified research policy. The
signatures of the applicant, the
project's supervisor, and the vice-
president for research would be
required to guarantee compliance with
the University's procedures.
In other business, the committee.
rejected two proposals by Marx. The
first called for five or six committee
members to select certain projects to
See PANEL, Page 5


roups pla
to rally byi
By SCOTT KASHKIN
A number of local community
organizations are considering counter-
actions against a rally by a neo -Nazi
group scheduled to be staged in Ann
*Arbor on March 20.
Philosophical debate over how to
respond to the S.S. Action Group
demonstration has emerged as it did
before the group's rally last year, with
some individuals calling for counter-
demonstrations and others saying the
rally should be ignored.

AP Photo

A carnival kiss

This couple decked out for Mardi Gras pays little attention to
surging around them on New Orleans' crowded Canal Street.

the crowd

I

ToDAY


Card-time for Ronnie

one day after Andy Rooney, in a commentary on the CBS
News program "60 Minutes," wondered aloud whether the
president carried any cash in his pockets. The stop in the
store provided an answer to that question. He paid for the
cards with a $10 bill he pulled from a pocket. Q
And Kansas beachfront property?
TTEY BUDDY, want to buy the Brooklyn Bridge? The

two pounds each, and some up to about five pounds," said
Michael Ricca, Polopia's marketing manager. "We've had
an inquiry from one person who wants to buy an entire
block., 12 cubic feet." The money will be funneled to city
historical and restoration' groups, Ricca said. The sale
could amount to an extra bonus for bridge lovers and
memorabilia collectors. Late last year, the Brooklyn
Bridge Centennial Commission announced that in connec-
tion with the 100th birthday of the bridge, it will sell
medallions with pieces of bridge cable dating from the turn
of the century and souvenirs made with bits of wood from

* 1933 - Ann Arbor barbers were forced to cut the price of
haircuts by 15 cents back to a base of 35 cents after students
protested the increase by threatening to use out-of-town
barbers.
" 1968 - The Student Government Committee declared
Feb. 17 a Day of Draft Deliberation and called on students
to boycott their classes.
* 1969 - The LSA curriculum committee recommended
that the college abolish credit for all ROTC classes.
0'

HE PRESIDENT'S surprise visit to a greeting
card store on Valentine's day to pick up a card and
maybe 60,000 chocolate kisses for Nancy caused

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