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September 08, 1984 - Image 2

Resource type:
The Michigan Daily, 1984-09-08

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Page 2 - The Michigan Daiily - Saturday, September 8, 1984
Regent named in bankruptcy suit


A Saline contractor last week filed an involuntary bankrup-
tcy petition against Unviersity Regent Deane Baker (R-Ann
Arbor) in an attempt to force the regent to pay more than
$24,000 in a court-ordered settlement.
Last December Washtenaw Circuit Court Judge William
Ager, Jr., ordered the Deane Baker Co. of Dearborn to pay
the builder, York Contracting Inc., $24,198 to settle a dispute
over construction of a group of condominiums in Ann Arbor.
THE CONTRACTOR filed suit in 1982, charging that
Baker's company failed to pay past bills. Attorneys for
Baker's company would not pay for the work because it was
The court ordered the company to pay within 20 days, but
the firm never paid and dissolved a month later on Jan. 1,
York Contracting's latest step is intended to force Baker's
defunct firm into bankruptcy, allowing York and other
creditors to recover payment through the courts.
DAVID FOSTER, attorney for York Contracting, said the
Baker Co. violated federal bankruptcy laws when it paid off'
loans to Baker without also paying York Contracting - after
the court order was handed down. The law, Foster said,
directs a company to pay off all creditors equally, and that
paying only Baker demonstrated an illegal "preferential

Compiled from Associated Press and
United Press International reports

After reviewing the petition, the U.S. Bankruptcy Court in
Detroit could order Baker to return all the assets he received
from the company, according to Foster. That money, which
York's lawyers said is about $70,000, could then be used to
pay off the company's creditors, he said.
But Richard Sanders, an attorney representing Baker Co.
in the case, called the petition a "red herring" that will be
thrown out by the bankruptcy court.
"There's no question in my mind that all the transactions
by the Deane Baker Co. were in accordance with state laws"
he said, adding that those transactions have been properly
Baker yesterday would not say whether he will contest the
petition during the 20-day answer period. "My only obser-
vation is that the company has been dissolved for a year," he
Law Prof. James White said there is a possibility money
could be retrieved through the bankruptcy proceedings. But,
he added that "the question that needs to be answered is
whether a company that is not in existence could be put into
The bankruptcy court is expected to take up the petition in
two weeks.


U.S. jobles rate stays at


WASHINGTON - Civilian unemployment leveled off at 7.5 percent in'J-
August, the government said yesterday, as new hiring slackened in accom-
paniment with the slowing pace of economic recovery.
President Reagan's chief spokesman said officials were pleased with "en
couraging news that unemployment rates have remained stable." But
critics contended the report signaled bad news for workers.
Unemployment stood at 7.6 percent when Reagan took office in January,
The number of Americans with jobs at that time totaled 99.9 million, com.-
pared with 105 million last month - roughly 425,000 below the level of July
and 700,000 beneath the all-time high recorded in June, said the Bureau of
Labor Statistics.
Michigan's unemployment rate dropped to a 4 -year low last month, the
Michigan Employment Security Commission said yesterday.
MESC acting director A. R. Jazowski said the number of people without
work fell by 50,000 from 506,000 or 11.3 percent in July to 456,000 or 10.3 percent
in August.
Blanchard pushes health bill
LANSING - Gov. James Blanchard yesterday urged lawmakers to pass
health care cost legislation during their upcoming session, saying this would
aid the current auto talks.
Blanchard told reporters the health care package is one of the ad -
ministration's top priorities for what it anticipates will be a brief pre-
election session beginning next week.
Others include long-stalled legislation creating a Michigan Strategic In-'
vestment Fund to aid business. Major portions of the health care package
have already been adopted.
They permit insurers to negotiate agreements with doctors and other
health care providers regarding fees and other matters.

...refuses to pay contractor

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ty, to warn members of the penalties
for selling alcohol without a license.
Jachalke also talked with Delta Up-
silon members, who decided to cancel
an all-campus party scheduled for this
ON THURSDAY, the Theta Delta Chi
received a call from Jo Rumsey, an
administrator in the University
Housing office. Rumsey told the frater-
nity that she had checked with the city
police and informed members that they
needed a license to sell alcohol in the
city, said Bob Eustice, president of the
He said that the fraternity had not
asked Rumsey to check with police
about the license and that they had
never acquired one for past Beer
Olympics parties.
Rumseyssaid she contacted several
fraternities about the licenses because
many, dormitory residents attend the
all-campus parties.
HOUSING HAS made a commitment
to responsible alcohol use in the dorms,
and many of the students attending the
Olympics had been dorm residents,"

said Rumsey. "As an information ser-
vice, I called several fraternities and
told them about the need for a license.
No one is cracking down on the frater-
nities, I'm just giving the houses the in-
formation they need if they want to sell
alcohol at their events."
On Rumsey's suggestion, Eustice
called Jachalke, who he said informed
him that police would close down the
party and arrest the organizers if
neighbors complained and the frater-
nity did not have a license.
Jachalke could not be reached for
comment yesterday.
But Deputy Chief Johnson said that
"it is illegal to sell booze or charge ad-
mission to a place that sells alcohol
without a license. What the fraternities
propose to do in their advertising is
illegal, and those in charge of the event
can be prosecuted."
to charge admission to the party,
Eustice said.
Johnson said the fraternity should
have obtained the licenses for past par--
ties. But he said that before this year,
the police have not known about the
Eustice said he cancelled the 50 kegs
the fraternity had ordered from Bud-
weiser's local distributor after talking
to Jachalke. The fraternity members
met yesterday and decided they still
wanted to hold the party, but Eustice
said it was too late to re-order the kegs.
"WE WERE WILLING to take the
risks to have the event when we
realized that no laws had changed from
last year," Eustice said.
Despite the confusion, however, last
night's Mudbowl Mash went off without
incident. As the beer flowed from kegs
at the bottom of the hill, the band SLK
crooned to the strains of their new wave
The nearby Village Corner market
was doing a land office business, while
the employees couldn't keep the beer on
the shelves long enough to keep up with
the demand. When the Mudbowl filled
with people the crowd spilled into the
The only complaint about alcohol
consumption came from those who
couldn't get enough of it as the crowds
swarmed around the kegs.
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State seeks funds to feedhungry
LANSING - Hunger has become a chronic problem in Michigan and a
major commitment of federal money is required to alleviate it, a state
commission reported yesterday.
The Michigan Food and Advisory Commission said a $4 billion dollar shift
in federal funding is needed nationwide to eliminate undernutrition and the
need to beg from private charities.
The commission was not able to say precisely how many Michigan
residents are hungry, but Wallace Williams, chairman of the panel, said he
is convinced hunger has increased.
"Hunger that can be remedied through full employment is a preventable
health risk," Public Health Director Gloria Smith said. "Hunger that has
become a chronic problem as a result of inadequate human relief programs
is an indefensible health risk."
Cubans jail American for
praising invasion of Grenada
WASHINGTON - The State Department said yesterday that an American
citizen has been sentenced to six years in prison in Cuba for allegedly
praising the U.S.-led invasion of Grenada last fall and criticizing Cuba's role
on the island.
,The American, whom the State Department refused to identify by name,
has said he merely expressed a personal opinion on the Grenada issue in a
non-violent manner to a group of Cubans, department spokesman John
Hughes said.
Hughes said U.S. officials in Havana delivered a note to the Cuban Foreign
Affairs Ministry on April 18, asserting that the imprisonment of the
American for expressing his opinions was a violation of his human rights and
in conflict with the U.N.Declaration of Human Rights.
U.S. officials said they were uncertain of the timing of the incident that led
to the American's arrest. But, they said, it apparently occurred a short time.
after the United States and several other Caribbean countries invaded
Grenada 11 months ago and brought to an end the island's four-year-old,'
Cuban-backed revolution.
Mondale plans 'Reagan tax'
Democrat Walter Mondale, who has been prodding President Reagan on
the subject, said yesterday he will disclose his/own plans for deficit-cutting
tax increases early next week.
Campaigning in Georgia, Mondale let it be known he will unveil plans for
his "Reagan tax" - so dubbed because it will go to pay off deficits created
during the current administration - in Philadelphia Monday.
"I demand Ronald Reagan stand up and tell the people of the United State,
what he is going to do as president to get those deficits down," Mondale said.
He said in July that his own plan would cut the deficit by two thirds, but he
has given few details since..
Vol. XVC - No. 3
Member of the Associated Press
The Michigan Daily (ISSN 0745-967X) is published Tuesday through Sun-
day during the fall and winter terms and Tuesday through Saturday during
the spring and summer terms by students at the University of Michigan.
Subscription rates: September through April-$16.50 in Ann Arbor, $29.00
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Second-class postage paid at Ann Arbor, Michigan. Postmaster: Send ad-
dress changes to The Michigan Daily, 420 Maynard Street, Ann Arbor,
Michigan 48109.

Police. pressure
stifles beer bashes
(Continued from Page 1)



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Editor in Chief ......................BILL SPINDLE
Managing Editors ................. CHERYL BAACKE
Personnel Editor .......................SUE BARTO
Associate Editors ................. LAURIE DELATER
Opinion Page Editors................ JAMES BOYD
Magazine Editor.................. JOSEPH KRAUS
Associate Magazine Editor .......... BEN YOMTOOB
Arts Editors..................FANNIE WEINSTEIN
Associate Arts Editors ................. BYRON BULL
ARTS STAFF: Joshua Bilmes, Jeff Froomon, Dennis
Harvey, Dave Kopel, John Logie, Emily Montgomery.
Elizabeth Plum.
Chief Photographer ............. DOUG MCMAHON
Sports Editor ..................... MIKE MCGRAW

PHOTO STAFF: Carol Francavilla, David Frankel, Dan
Habib, Jeff Schrier.
SPORTS STAFF: Sue Brosner, Joe Ewing, Chris Ger-
basi, Tom Keaney, Ted Lerner, Tim Makinen, Adam
Martin, Scott McKinley, Barb McQuade, Brad Morgan,
Phil Nussel, Sandy Pincus, Mike Redstone, Scott
Solowich, Randy Schwartz, Susan Warner, Rich
Weides, Andres Wolf.
Business Manager ................. STEVEN BLOOM
Advertising Manager , . . . MICHAEL MANASTER (HRH)
Display Manager.................... LIZ CARSON
Nationals Manager ..................... JOE ORTIZ
Sales Manager.............. :..DEBBIE DIOGUARDI
Finance Manager .......... . .......LINDA KAFTON
Marketing Manager .....KELLY SODEN
Operations Manager .. . ............. KELLY DOLAN
Classified Manager ............. JANICE BOLOGNA


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