Yew York
irand j*ury
ndicts
~ecretary
onovan
ASHINGTON (AP) - Labor
cretary Raymond Donovan has been
icted by a county grand jury in the
onx, N.Y., in connection with a sub-
y project by the construction com-
ny he formerly served as executive
ce president, a Reagan ad-
inistration source said yesterday.
even officials of the Schiavone Con-
uction Co. of Secaucus, N.J., were
o named in the 137-count indictment,
company's lawyer said.
GRAND JURY indictments are
cret and it could not be learned im-
ediately what charge was being
eled against Donovan.
Presidential spokesman Larry
akes said President Reagan "based
what he knows now" still has con-
ence in Donovan. But Speakes
oted him as saying that "I don't know
ugh to comment" on the indictment
rt.
The administration source, who
oke on condition he not be identified,
id Donovan was flying to Houston
sterday to make a series of speeches
hen the indictment was handed up.
THEODORE GEISER, a Neward,
.J., attorney who has been represen-
g the Schiavone Co., confirmed that
e indictment also named company
esident Ronald Schiavone and a half-
en other company officials.
I can confirm to you that the
mpany president and six of its of-
cers were indicted," Geiser said in a
lephone interview. He said the indic-
nent involved "alleged false pieces of
formation" in 136 counts and one
unt of grand larceny.
The Jocus of the Bronx grand jury
obe was the relationship between the
hiavone Co. and the Jopel Construe-
on and Trucking Co. of the Bronx.
N ITS WORK at subway excavations
ew York City, Schiavone hired
opel to assist in hauling dirt. Under
deral regulations, 10 percent of the
ontract had to go to minority-owned
mpanies. Jopel was co-owned by a
lack Bronx politician and by a reputed
rganized crime figure.
The investigation involved
llegations that Schiavone overstated
e amount of work that Jopel perfor-
ed.
onovan, who was a part-owner as
11 as executive vice president of con-
truction company before he joined the
eagan Cabinet in 1981, had been in-
estigated for nearly a year by a
pecial prosecutor in 1982.
In two separate 1982 reports on
ilegations that Donovan, as a con-
truction executive, had ties to
rganized crime figures, special
rosecutor Leon Silverman concluded
here was "insufficient credible
Wence" on which to prosecute the
retary.

The Michigan Daily - Tuesday, October 2, 1984 - Page 5
Council considers new parking law

By KERY MURAKAMI
A proposal to provide incentives to
pay parking fines quickly passed its fir-
st reading in City Council last night. If
passed after public hearings next mon-
th, it will raise the penalty for parking
violations from $3 to $4 while lowering
these fines to $2 if paid within 48 hours.
To make payments easier and to cut
administrative costs, the proposed or-
dinance would provide for three collec-

ting boxes to be set up in the city to
allow immediate payments.
WITH NINE of the 11 Council mem-
bers attending, the ordinance passed its
first test by a vote of 7-2. One of the ob-
jectors, Councilmember Jeannette
Middleton raised several questions
about the ordinance.
"My main objection," she said, "is
that while it may provide incentives to
pay fines quicker, it penalizes people

who do not pay within 48 hours. I don't
think 48 hours is a reasonable time to
expect fines to be paid."
Still, Councilmember Jeff Epton,
another of the ordinance's sponsors,
said the ordinance will "put a happy
face on the whole parking situation."
"Granting incentives to responsbile
violators will be a show of good will and
reasonableness on our part," explained
Edgren.

Video poker reaps illegalprofits

WASHINGTON (AP) - Video poker and blackjack games,
using high technology to circumvent anti-gambling laws, are
reaping big illegal profits in America's bars, grocery stores
and pizza parlors, a Senate panel was told yesterday.
"These devices are slot machines in sheep's clothing,"
commented Sen. William V. Roth Jr., (R-Del.), as his Per-
manent Subcommittee on Investigations heard from law en-'
forcement people and a truck-stop owner who said he made
$100,000 a year from five poker machines.

FBI AGENT William Holmes brought along four devices to
demonstrate how customers play draw poker on a video
screen at space-age speed: no bluffing, just pumping in quar-
ters and trying to fill inside straights.
Angelo Aponte, commissioner of the New York City con-
sumer affairs department, said the new machines "in nearly
every way" resemble the video screen gambling devices that
are legal in Nevada and Atlantic City, N.J.
Aponte estimated that in his state alone such devices take
in $750 million a year.

764-0558

*WSI-IINqION INTERN Siip.
Juniors or Seniors with a 3.0 average:
interested in Congress? Earn 16 credits
on Capitol Hill.
- Unique Internships based on your
interests. Work with members of Con-
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- Seminars with leading government
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'W ashington Faculty headed by
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Intern Advisory Council.
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Filing deadline for Semester II:
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For applications and information:
BOSTON UNIVERSITy
Washington Legislative Internship Program
College of Liberal Arts-Room 302
725 Commonwealth Avenue, Boston MA 02215
617/353-2408
An Equal Opportunity Institution

Stairway to heaven
A University worker climbs the flag pole on the
paint it before the winter cold arrives.

Daily Photo by TOD WOOLF
Diag sunday afternoon to

m

Congress studies draft bill

(Continued from Page 1)
ation, the National Association of Land
Grant Colleges, and the American
Association of Dental Schools, said the
amendment puts colleges and univer-
sities into the role of enforcing the law.
"(University'officials) object to the
principle that it puts the University in
the place of law enforcers for the
Justice Department" and creates more

paperwork for the school, Butts said.
At the University's Medical School,
which would be covered by the
proposed new provision, the Solomon
IV bill will not have a significant effect on
current students because many were
over 21 when the law was passed and
did not have to register, according to
Diane Samples, a financial aid director.



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