Ninety-nine years of editorialfreedom Vol. IC, No. 104 Ann Arbor, Michigan - Friday, February 24, 1989 Copyright 1989, The Michigan Daily Divestment case dropped in state court Greenthum b ROBIN LOZNAK/Daily LSA senior Christen Martinez works on a project for her Biology 301 class in the greenhouse attached to the Natural Science building. BY PATRICK STAIGER The Michigan Supreme Court ruled yesterday to end the Univer- sity's six-year battle with the state over a law requiring state colleges to divest from companies operating in South Africa. Because the University's Board of Regents already divested the holdings from South Africa last October re- quired by the state law, the court ruled that the state's case was moot. The University still holds large investments in South African operating companies not included under the state law. These companies include General Motors, Coca-Cola, and International Business Machines, which though have said they have divested, still maintain indirect ties to the country for profit. Michigan Attorney General Frank Kelly dropped the state's case against the regents last October after the re- gents divested. But in November, State Rep. Perry Bullard (D-Ann Arbor) said he wanted to continue the case because the University could reinvest at any time. The Michigan Court of Appeals ruled early last year that the law violated the University's constitu- tional autonomy and said Michigan didn't have a public policy favoring South African divestiture. Regent Veronica Smith (R- Grosse Ile) said, "I am pleased the Supreme Court reached that decision and I think it is a victory for the University." Brett McRae, counsel to the House Judiciary Committee headed by Bullard, said the Attorney General agreed to continue with the case if the regents ever decided to reinvest its controversial stocks. "It's regrettable that the Univer- sity waited so long to divest. The regents could have taken action a long time ago, on their own," McRae said. "But better late than never." The regents decided to divest all but $500,000 of its $50 million in- vested in South African operating companies in 1982 when they first sued the state over the law, saying it interfered with University autonomy given in the 1963 state constitution. Student activists and anti- apartheid groups demanded that the University divest from South African-operating companies since 1969, in order to pressure American companies to withdraw from South Africa in protest of its apartheid government. In its decision, the Supreme Court emphasized it was not sup- porting the argument of either side in the case, which could set an am- biguous precedent for University au- tonomy. See Divest, Page 2 'GEO settles for 14% pay raise BY SCOTT LAHDE University graduate student teaching assistants have a new con- tract that gives them a 14.5 percent salary increase over the next two years. The Graduate Employees Organi- zation settled tentatively with the University late Wednesday night af- ter about five weeks of negotiations. GEO bargaining spokesperson Stefan Koch said the increase was "acceptable," and more than ex- pected. The increase prompted the bargaining team to scrap its current efforts to limit class sizes and abol- ish the "ten-term rule." The University has opposed all GEG-proposed policies to limit class sizes and ban the ten-term limit for TAs. "We were very concerned in get- ting a salary increase," Koch said, because the University would not offer the salary increase during 1986 bargaining. The University offered a salary increase of 9 percent for 1989-90 and 5.5 percent for 1990-91 because its "aim for the last couple of years was to increase financial aid packages for graduate students," said Coleen Dolan-Greene, assistant vice presi- dent for academic affairs. University officials will deter- mine the costs of the salary increase when they formulate next year's budget. The GEO Steering Committee has yet to decide whether they will recommend the agreement to its 1,800 members. The current GEO contract expires March 1, and the new one will go into effect when it is approved by a membership vote. Late Monday and Wednesday nights, GEO members bargained the University's counterproposal. "The membership is not satisfied with the University's proposal submitted Monday," GEO President Don Demetriades said during Wednesday's membership meeting. "And we strongly support class size (policies) See GEO, Page 2 Rice and Robinson star as Michigan beats OSU 89-72 BY ADAM SCHRAGER SPECIAL TO THE DAILY COLUMBUS - "Our players have good memories," said Ohio State coach Gary Williams after last month's 99-73 Michigan drubbing * of the Buckeyes in Ann Arbor. Well, after last night's 89-72 Michigan victory in Columbus, Williams hopes his team contracts a new disease called Michiganamnesia, or forgetting all about Michigan. Glen Rice scored 30 points to lead the No. 13 Wolverines, who with this victory recorded their sixth- straight 20-win season under coach Bill Frieder, while giving the Buckeyes their second-worst loss of the season. "We were upset after our loss to Indiana," Rice said in reference to last Sunday's controversial one-point defeat in Bloomington. "We took it out on Ohio State... and it's not over yet." In one of his better games of the season, point guard Rumeal Robinson scored 16 points and tallied nine assists. Robinson, who has been criticized for being an out- of-control player, ran the fast break with precision, combining driving layups with a wide assortment of fancy passes. "The player-of-the-game in my mind is Rumeal Robinson," Frieder said. "He made great decisions in the open court and just played a great all-around game." "Rumeal Robinson... he's a great player," his Ohio State counterpart See Rice, Page 8 .Financial woes close State movie house indefinitely BY JUDITH ABRAMS After 57 years, the State Theater closed its doors to the public last night because of financial problems. Hogarth Management, an Ann Arbor-based real es- tate company, will purchase the theater on Feb. 28 from its current owner, George Kerasotes Corporation of Springfield, Illinois. Kerasotes sold the theater be- cause it was no longer economically viable, said Roger Hewitt, Hogarth general manager. Hogarth plans to re-open the theater's two upstairs screens while converting the first floor into retail space. Retail businesses should open in the fall and the company hopes to restore the upstairs theaters within a year, Hewitt said. The five students standing in line last night had mixed reactions to the State's closing. "I'm bummed. It's so convenient and I don't have a car to go any where else," said graduate student Paul Pappas. But James Williams, a member of the Cinema Guild, was glad to see it go. "Well, I never really liked the theater anyway," said the LSA junior. "Maybe this will boost attendance at See State, Page 2 ROBIN LOZNAK/Daily Hop In Laurie Dingle stocks shelves at the new Hop In on South University. The store will be open 24 hours a day starting next Tuesday. Council approves implementation of solid waste task force report Senate committee 'rejects John Tower INSIDE_ WASHINGTON (AP) - The Senate Armed Services Committee voted yesterday to reject John Tower's nomination as defense secretary, splitting 11-9 along party lines as it handed President George Bush the first major defeat of his administration. * The full Senate is expected to and suggested Tower was held to too high a standard. In Tokyo, where Bush was attending the funeral of Japanese Emperor Hirohito, White House spokesperson Marlin Fitzwater said the president was sticking by Tower, and "there's no consideration of any change.neriod." Why do you sit where you sit? JusticeCn risler Arena, See Opinion, Page 4 Buddy Guy's bent a few strings and broken a few egos in his time, See Arts, PageS The Michigan hockey team faces Miami-Ohio this weekend, but eyes next weekend's playoffs at BY KRISTINE LALONDE In response to a growing solid waste problem, the Ann Arbor City Council unanimously approved a resolution to establish four new re- cycling centers and a compost waste facility by this summer. But many councilmembers voiced concern over money constraints on the program's implementation. "We really do have a budget crisis in the solid waste department." said councilmember Kathy Edgren (D- Fifth Ward). Four recycling centers to open revenue flow that we had when we (implemented) the task force." Because the council did not fore- see the budgetary problems the completion dates for the recycling centers and the compost facility were pushed back. Councilmember Thomas Richardson (R-Fifth Ward), the hill'e cnnnncr cirI k-eis c ;' pickup per household. If the one-can limit is exceeded, a fee will be charged. The result of such a fee may be increased incentive to recycle and less garbage output. Some councilmembers disagreed proposing a variable fee because it was too specific. "To not name other things is to be exclusionary," said councilmem- ber Ann Marie Coleman (D-First I I