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January 17, 1990 - Image 2

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Publication:
The Michigan Daily, 1990-01-17

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Page 2-The Michigan Daily - Wednesday, January 17, 1990
Bankruptcy
effects may be
widespread

NEW YORK (AP) - Campeau-
Corp. is keeping its coast-to-coast
department store empire running, but
the bankruptcy reorganization of its
shattered finances could have far-
reaching consequences beyond the
retail business.
Experts say its financial troubles
eventually could endanger the jobs of
some of the 100,000 employees at
Campeau's 258 stores around the
country, lessen the immediate trend
toward price-cutting competition
among department stores, and
prompt investors to be more criti-
cal of proposed retailer buyouts.
By seeking bankruptcy court
shelter from creditors Monday,
Campeau's Federated Department
Stores Inc. and Allied Stores Corp.
which control such famous chains as
Bloomingdale's, Lazarus and Rich's
can continue operating, covering
payrolls and meeting suppliers' bills
while restructuring their debts. The

fate of the store chains depends on
how they untangle their balance-
sheet problems. In filing the largest
retailing case ever under Chapter 11
of the federal bankruptcy code,Fed-
erated and Allied said their liabilities
total $7.7 billion while their assets
amount to $9.1 billion.
There's no guarantee Federated
and Allied will be healthy even once
they complete a bankruptcy court-
supervised reorganization, experts
said yesterday.
Retailers generally buy merchan-
dise on credit, so if credit dries up,
manufacturers may refuse to ship,
leaving stores short of inventory and
customers disenchanted.
Business hasn't been booming at
U.S. department stores in recent
months, but analysts say stores
owned by the Canadian Campeau
largely have been moneymakers.

JUSH MOORE-/aity

Graffiti cleanup
'U' employee Dan Burton cleans graffiti off of the Diag.

Senators push to legalize drug-testing

IN BRIEF
Compiled from Associated Press and staff reports
Bulgarian opposition gets
right to publish newspaper
SOFIA, Bulgaria - The ruling Communist party, in a concession to
the country's fledgling opposition, agreed yesterday to allow democratic
groups to publish their own newspaper and said they would be granted of-
fices in Sofia.
However, the party rejected a demand for opposition access to radio an
television, which would take democratic ideas across this largely rural na-
tion.
The compromise was fashioned after the opposition threatened to with-
draw from talks with the Communists that many hope will hasten Bul-
garia's faltering transition to democracy.
More than 50,000 people attended one of the biggest anti-Communist
demonstrations in Bulgarian history on Sunday to back the opposition's
demands for more democracy. The demonstration, organized at two days'
notice, testified to slowly growing popular support for opposition groups
still banned just three months ago.
Court to rule on accused's
right to confront child victim
WASHINGTON - The Supreme Court said yesterday it will decide
by July whether people charged with child abuse have the right to at least
one face-to-face meeting with their young accusers - a decision of enor-
mous importance to child-abuse prosecutions.
Many states in recent years have taken steps to protect young crime
victims, such as allowing a child to testify by closed circuit television
rather than in the presence of the defendant, which often can be traumatic.
The court's decision could spell out what steps are necessary to meet
the constitutional requirement that "in all criminal prosecutions, the ac-
cused shall enjoy the right... to be confronted with the witnesses against
him."
Maryland Attorney General Joseph Curran said, "This is a crucial case
for the protection of the most vulnerable of victims: our children."
Former Rep. arrested again
LANSING- Former state Rep. Dennis Dutko, just nine days after he
got out of jail and pledged to build a new life, was arrested on cocaine and
marijuana charges in Tennessee, police said yesterday.
The Warren Democrat was serving a jail term for two drunken driving
convictions when he resigned from his House seat Oct. 2. He was released
from the Ingham County jail on Jan. 3.
Dutko was arrested Friday in Chattanooga and charged with posses-
sion of cocaine, marijuana, possession of drug paraphernalia, and driving
with a revoked driver's licence, said Rick Mullins, assistant chief clerk at
the Hamilton County Criminal Court.
Yesterday Warren residents voted to replace Dutko, a 15-year incum-
bent. The 25th District House seat, which Dutko occupied, has been
without representation since May 24, when Dutko was sentenced for two
drunken driving charges.
Bridge needs higher railings
LANSING - The Mackinac Bridge has fundamental safety flaws that
should be corrected with higher railings and a new center median, accord-
ing to a Senate committee..
The final report of the Senate Committee on State Affairs, Tourism
and Transportation notes that the railings on the bridge, which links the
Upper and Lower peninsulas of Michigan, haven't met national highway
safety design standards for almost 26 years.
The bridge opened in 1957, or 33 years ago.
State Transportation Director James Pitz declined to comment on the
recommendations, saying his department is waiting for a report from the
engineering firm that designed the bridge.
"Adding new railings or barriers are much more complicated for this
bridge because the weight and wind resistence changes must be studied,"
Pitz said.
EXTRASy

S

WASHINGTON (AP) - A Sen-
ate bill setting federal drug-testing
standards for private companies
would provide consistency and elim-
inate lawsuits, supporters including
former Surgeon General C. Everett
Koop said yesterday, but critics con-
tend it would erode workers' rights.
The bill, sponsored by Sens.
Orrin Hatch (R-Utah) and David
Boren (D-Okla.) does not require
businesses to test employees but
gives them the clear right to do so
- a provision supporters said would
prevent unwarranted court challenges
to drug-testing policies.
Court challenges discourage
companies from implementing drug-
testing programs, which have been
shown to deter workers from using
alcohol and drugs on the job, Koop

and other supporters said at a news
conference.
"Courts all over the country are
saying, 'Yes, you can,' and 'No you
can't,"' Koop said.
Hatch said the measure protects
the privacy rights by establishing
guidelines for circumstances under
which businesses can test their
workers.
But Rep. Don Edwards (D-
Calif.), chair of the house judiciary
subcommittee on civil and constitu-
tional rights, called the measure "a
horrible invasion of Americans'
rights without probable cause."
The bill might have support
when Congress returns next week,
Edwards said, "with the the drug hys-
teria that is being fanned by Presi-
dent Bush and his hard-line macho

approach almost daily."
Under the measure, drug and al-
cohol tests would have to be ana-
lyzed at a federally certified lab.
Tests could be conducted before
workers are hired, during annual
physical exams and anytime for
workers who had gone through a
drug rehabilitation program.
Random testing could be con-
ducted only for "sensitive" employ-
ees, or workers whose jobs, as de-
fined by the employer, deal with na-
tional security, health or safety, the
environment or require "a high de-
gree of trust and confidence."
The American Civil Liberties
Union considers the guidelines vague
and broad, said the group's legisla-
tive representative, Gene Guerrero.
"You could say the cleaning per-

son who comes in at night has a
'high degree of trust and confidence'
because they could steal the type-
writer," Guerrero said.
"That's nickel and diming," coun-
tered Hatch's press secretary, Paul
Smith. He said the measure "sets
down more for employees than for
employers. The employees will have
their eyes open - they'll know
what's going on."
The ACLU also opposes the
measure because it would preempt
state laws that do more to protect
workers, Guerrero said. Sixteen
states now have drug-testing laws,
and several of those laws are more
protective of workers' privacy rights
than the Hatch-Boren measure, he
said.

LI
Health & Fitness*]

More than 700 to
lose jobs in Detroit

p*

Ie

WHAT'S
HAPPENING

RECREATIONAL SPORTS
Outdoor Recreation Program
INTRODUCTORY KAYAK CLINIC"
WED., JAN. 17, 1990
North Campus Recreation Bldg. 8pm - 10pm
"BEGINNER I;BEGINNER II CROSS COUNTRY SKI CLINIC"
THURS., JAN. 18, 1990
Mitchell Field 7pm - 8:30pm
HORSEBACK TRAIL RIDE-
SUN., JANUARY 28, 1990 1PM - 3PM
PRE-TRIP MEETING: WED., JAN. 17, 1990
North Campus Recreation Bldg. 7:00pm
TO SIGN UP FOR ANY OF THESE CALL 764-3967

DETROIT (AP)- Five hundred
police officers and 222 other city
workers will be laid off next month,
parts of efforts to cut in half an
estimated $60 million budget deficit,
a mayoral spokeperson said
yesterday.
Mayor Coleman Young's
program to trim $28 million from
the budget includes a hiring freeze,
canceling nine police-training
classes, curbing overtime and travel
by city workers and recommending
that Detroit City Council make
reductions in departments under its
direction.
"The mayor is looking for more
ways to cut, but he wanted to get
moving on these right away, " said
Bob Berg, the mayor's press
secretary.
The police layoffs, effective
Feb.2, will affect officers who were
hired after Jan.18, 1987.
"I have directed the chief to take

all possible steps to assure that these
layoffs do not reduce the number of
officers on the streets, but rather
come from other parts of the
department, " the mayor said in a
statement released Tuesday.
The heaviest cuts were made in
the police force because it was the
only department to gain in staff
since a tight budget forced cuts in
the early 1980s, Young said. The
department had 4,741 sworn officers
on Jan.1, compared with 3,721
before hiring was resumed in 1984.
The 222 other workers who will
lose their jobs are from the
departments of Public Works,
Health, Transportation, and Parks
and Recreation.
The mayor blamed the expected
deficit on a loss of city tax revenue
and state revenue-sharing funds and a
payroll fattened up by this year's 3-
to-5-percent raises for city workers.

Talking about the weather

U
U

S c i c .

RE CREATIONAL

SPORTS

C rossword Puzle
Love notes
Announcements
Stuff for sale
S ummer sublets
International travel
Fabulous jobs
Incredible offers
Excellent results
Daring personals

O.K., all right, so the weather wasn't quite what it was built up to be
in this space yesterday. You have my word though that today will be the
day to use all those neat new words we published. -by Alex Gordon
%,
~b ~rrb4Wu.1rai~l
The Michigan Daily (ISSN 0745-967) is published Monday through Friday during the fall and winter
terms by students at the University of Michigan. Subscription rates: for fall and winter (2 semesters)
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EDITOAIAL STAFF:
Editor in Chif Adam Sdhrager Sports Editor ike Gil
Managing Editor Steve Knopper Associate Sports Editors Adam Benson, Steve Blonder,
News Editors Miguel Cruz, Richard Eisen, Lory Knapp,
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Opinion Page Editors Elzabeth Esch, Amy Harmon Arts Editors Andrea Gadd, Alyssa Katz
Associate Opinion Editors Philip Cohen, Camile Ccdatos Fim Tony Silber
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News: Karen Akedof, Joanna Broder, Jason Carter, Diane Cook, Laura Counts, Marion Davis, Heater Fee, Noah Finkel, Tara
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Mitnick, Dan Poux, Amy Ouick, Gil Renbeg, Taraneh Shall, Mike Sobel, Vera Songwe, Noelle Vance, Ken walker, Donna woodwel.
Opinion: Jonathan Fink, Christina Fong, Deyar Jamil, Fran Obeid, Uz Paige, Henry Park, Greg Rowe, Kathryn Savoie, Kim Springer,
Rashid Taher, Luis Vazquez, Dma Ziatimo.
Sports: Jamie Burgess, Steve Cohen, Theodore Cox, Jeri Durst, Scott Erskine, Andy Gotlesman, Phil Green, Aaron Hnkin, David
Hyman, Bethany Klipec, Eric Lemont, John Niyo, Sarah Osbumn, Matt Rennie, Jonathan Samnick, David Schechter, Ryan Schreiber,
Jeff Shoran, Peter Zelten, Dan Zoch.
Arts: Greg Bae, Sherill L Bannet, Jan Blk, Mark Binell, Kenneth Chow, Sheala Durant, Brent Edwards, Mike Fisdier, Forrest
Green, Sharon Grimberg, Brian Jarvien, Mike Kuniavsky, Ami Mehta, Mike Molitor, Carolyn Pajor, Krisin Palm, Annette Peusso, Jay
Pinka, Gregod Roach, Peter Shapiro, Rona Sheramy.
Photo: Jennifer Dunetz, Amy Feldman, Julie Holiman, Jose Juarez, Jonathan Liss, Josh Moor, Samantha Sanders, Kenneth Smoller,
Douas usher.

S
S

Present

MEN'S and WUMEN's

r
4
S

3bonk3 Basketball
" Single Elimination & Regional Tournaments held in Ann Arbor
" Championship Game of Regionals to be played in
The Palace before Piston's Game
" Single Elimination Tournament Deadline: Jan. 22, 1990

!6:1

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BUSINES TAFF.

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