Page 2-The Michigan Daily- Wednesday, October 28, 1992
FINAL WEEK
Continued from page 1
symbolizing GOP charges about
Clinton's changeability. He had a
tougher moment earlier, in an inter-
view with CBS' "This Morning,"
when he asserted, "We have been
pushing the idea that George Bush is
going to make matters much, much
worse.,
The government reported that
economic growth jumped to an an-
nual rate of 2.7 percent in the quarter
ending Sept. 30. The growth sur-
prised most private forecasters and
was nearly double the weak 1.5
percent rate in the April-June
quarter.
"It's going to be very hard for the
nay-sayers and the pessimists, who
can only win by convincing people
how bad things are, to refute the fact
that this is very encouraging for
America," the President said.
"If you think I'm happy, you're
right," said Bush.
Clinton campaigned from
Georgia to Florida to Louisiana.
"If we carry Florida, it is over,"
Clinton shouted to the cheering
crowd in Tampa.
Running mate Al Gore cam-
paigned in Wisconsin and Michigan,
serenaded in Racine, Wis., by a
crowd chanting, "One more week."
Even while predicting victory,
Bush looked ahead to his life after
he leaves the White House.
"I'm going to get big in the
grandchild business, I'm going to get
big in the golf business," he said on
NBC's "Today" program.
Study claims that Prop. D won't cut rates
LANSING (AP) - Auto insur-
ance giant AAA Michigan unveiled
a study yesterday it said disproves
trial lawyers' contentions that
Proposal D won't cut rates.
The state's largest auto insurer
also said it was shoring up support
for its ballot proposal through a mass
mailing to its 815,000 customers.
Letters mailed yesterday will tell
them exactly how much they'd save
under Proposal D.
"Contrary to the claims of trial
lawyers, Proposal D will deliver as
promised," said Bill Cilluffo, AAA's
governmental affairs chief. "There's
nothing illusory. This is dramatic
proof of the real savings."
But Rick Stoddard, president of
the Michigan Citizens Lobby, said
any rate relief from Proposal D
would be short-lived at best.
"Even if you give AAA the ben-
efit of the doubt and assume they
follow through, Proposal D does al-
low them to raise rates every six
months," he said.
"People may see temporary cuts,
but they're also going to see cost
shifts. If you decide you need more
coverage, it's going to cost more."
The Citizens Lobby and trial
lawyers oppose Proposal D because
it would restrict the ability of crash
victims to sue and would end two
decades of unlimited medical
coverage.
Motorists now are covered for
get the maximum $5 million cover-
age would save an average of 11
percent, or $80 a year, AAA says.
Some drivers would save even
more, depending on the coverage
they select and the kind of car they
drive, AAA said yesterday.
The company said it took a ran-
dom look at 30 of its customers from
'Drivers can realize substantial savings at all
levels. Our study looked at real people and
found real rate savings.'
- Bill Cilluffo
AAA governmental affairs chief
found real rate savings."
With next Tuesday's election less
than a week away, that's the mes-
sage that Dearborn-based AAA's
customers will find in their
mailboxes.
"They can trot out all the studies,
charts and examples they want,
countered Gary Fralick, spokesper-
son for the Michigan Trial Lawyers
Association.
"The only thing that determines
whether people get any reduction at
all is what their new law says. They
could give you a 100 percent
rollback and six months later raise it
200 percent," he said.
Cilluffo said the mailing would
customize the potential savings for
the 1.3 million vehicles insured by
AAA. Those households represent a
voting block of 1.5 million to 2
million, he said.
"People should be cynical about;
these kinds of mailings a couple of,
days before the election," Stoddard
said. "I think people will see it as
last-minute campaign propaganda.
That's all it is."
RIEGLE
Continued from page 1
in it." But the former head of the
U.N. nuclear inspections team in
Iraq, David Kay, disputed that.
Last week, Bush said he may
have "overstated it" in the debate.
At yesterday's hearing, Kay re-
peated his disagreement with Bush.
Kay offered this advice to the
president: "Watch out when you're
around bulls - they're dangerous
no matter from which end you ap-
proach them.... Be careful you don't
put your foot in it."
"That clearly happened during
the debate," Kay added.
Sen. Jake Garn of Utah, the
committee's ranking Republican, in
a written statement, called the hear-
ing "an abuse of the banking com-
mittee and a misuse of taxpayer dol-
lars purely for partisan political pur-
LARO
Continued from page 1
However, she also agreed with
the original provision for an appeals
process under one faculty member
for students who felt they were
wronged by other students.
Laro said she also hoped to be a
student advocate in regards to
setting tuition.
"We will do all we can to main-
tain it. We know it's already high
for some of our students. If it does
rise, we can counteract that with
nore financial aid to make it acces-
sible to more students.
"There are ways of raising rev-
enues and other ways of cutting
costs," Laro added, proposing that
the U-M rearrange academic units,
poses." Garn termed Riegle's
accusations "outrageous."
Riegle released copies of a July
25, 1990, note from former
Secretary of State James Baker to
then-Commerce Secretary Robert
Mosbacher, requesting urgently that
additional export controls be placed
on items "that could contribute to
Iraq's chemical and biological
weapons and missile programs."
The note, sent shortly before Iraq
invaded Kuwait, appears to indicate
that Baker believed the export
controls then in place were
inadequate.
Riegle, disputing recent state-
ments by Bush's national security
adviser Brent Scowcroft and
Secretary of State Lawrence
Eagleburger, said officials are
"putting out false information. They
are doing that in the face of the
evidence."
consolidate staffs, and house activi-
ties in U-M facilities year-round, in
an attempt to bring in more money.
"I don't know everything, but I
have a real headstart in that," she
said.
Laro, a U-M Flint alumnae, said
she also realizes the problems of the
students. "I'd like to be more acces-
sible before a board meeting ...
many issues need to be resolved
beforehand.
"It makes us more knowledge-
able. (The students) can give input
before it's needed as opposed to
always being on a confrontational
basis," Laro added.
Laro said she has received calls
from students concerned with the
Statement of Student Rights and
Responsibilities.
unlimited medical bills under
Michigan's no-fault system.
Proposal D would require drivers to
be covered for just $250,000.
Drivers still could buy up to $5
million worth of extra insurance.
AAA says most drivers who
choose that $250,000 minimum
would see their rates drop by 20 per-
cent, or $150 a year. Even those who
around the state whose yearly bills
now average $732. One Coldwater
driver could save up to 36 percent or
$131, AAA said. Another, a driver
from Portage, could save 34 percent
or $140.
"Drivers can realize substantial
savings at all levels," Cilluffo said.
"Our study looked at real people and
Sources say Smale to replace Stempel as chair at GM
DETROIT (AP) - John Smale,
the General Motors Corp. director
who reportedly led the boardroom
coup ousting Chair Robert Stempel,
is the odds-on favorite to succeed
Stempel, auto industry insiders said
yesterday.
"What you can expect from GM
is the expected," said Gerald
Meyers, former chair of American
Motors Corp. and now a manage-
ment consultant. "This isn't a 'pull a
guy out of General Dynamics' kind
of thing."
A source with close ties to GM's
board, said there was an 80 percent
chance Smale will assume the chair
and chief executive's role during
GM's board meeting Monday in
New York.
The disastrous condition of GM's
finances, its continual erosion of
market share and impressions that
management was moving too slowly
to reverse mounting losses combined
to force Stempel's resignation
Monday.
GM lost $12 billion in its North
American auto operations in 1990-
91 and is expected to report a third-
quarter loss of $845 million tomor-
row, mostly because of poor sales of
its cars and trucks in the United
States and Canada.
The possibility of an outsider,
such as former General Electric Co.
Chair John Welch, taking over as
chair was discounted by analysts
yesterday, but the fluidity of the GM
situation left open the possibility.
"There is a rump group that has
been pressing for over a year to go
outside" for a new chair, the source
said. "They are very vitriolic."
'If Smale does not take
the chairman's job
temporarily, then all
the moves made thus
far do not make any
sense.,
- Eugene Jennings
Michigan State
University professor
emeritus
Another outsider mentioned as a
possible candidate was former race
car driver Roger Penske, whose
name was mentioned earlier this
year as a possible successor to Lee
Iacocca at Chrysler Corp.
Penske has turned around several
small businesses, such as Detroit
Diesel Corp., which he since has
bought from GM, and Penske Truck
Leasing, a joint venture with General
Electric Capital Corp. A spokesper-
son said Penske is not involved in
talks with GM's board.
"If Smale does not take the
chairman's job temporarily, then all
the moves made thus far do not
make any sense," said Eugene
Jennings, professor emeritus at
Michigan State University and a GM
watcher. "The only thing that makes
sense is for Smale to preside over
the completion of this revolution."
The crisis atmosphere at the
world's largest automaker has
heightened to the point where a mass
exodus of top executives is antici-
pated, perhaps beginning as soon as
today.
"When you see a chairman go,
anything's plausible," said one GM
executive, who spoke yesterday on
the condition his name not. be used.
"We know we're all fair game."
At least 10 executives, most with
ties to Stempel and previous Chair
Roger Smith, are expected to resign,
one source said.
"Getting the old guard out of
there that has been delaying the re-
organization of . General Motors is
the key," the source said. "They all
have coattails, they all have the
power to interfere. Assigning them
make-work was worse than just fir-
ing them."
The reference apparently was to
executives demoted in the first stage
of GM's shakeup in April, including
President Lloyd Reuss, Executive
Vice President Alan Smith and for-
mer Chief Financial Officer Robert
O'Connell.
Smale, the former Procter &
Gamble Co. chair who has been,
chair of the GM board's executive
committee since April, has not re-
turned phone calls seeking comment.'
Reports that labeled Smale as the
leader of board insurgents also sug-
gest he will take the helm for one to
three years despite having no experi-
ence in the auto industry.
Other GM board members with
business backgrounds - including
former CBS Inc. Chair Thomas
Wyman, former Pfizer Inc. Chair
Edmund Pratt, and Marriott Corp.
Chair J.W. Marriott - are said to be
working in concert with Smale.
Wyman sits on the board's executive
committee with Smale.
The source with close ties to the
board said there may be a move
afoot to get rid of some directors,
too. Currently the board consists of
15 members, 11 non-employee di-
rectors and four corporate officers.
Stempel has indicated he will give
up his board seat as part of his resig-
nation as chair.
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AUDIT
Continued from page 1
Residence's showers, and then
measure how much water is saved,
Kaplan said.
Kaplan said Business curriculum
changes and Business students them-
selves must be incorporated into the
process when the proposal is final.
"These are the future business
leaders of America - it is important
for them to understand
environmental issues," she said.
Bloch said the chemistry depart-
ment has been cooperative, and that
they were planning to develop a sim-
ilar tracking system on their own.
"The department couldn't care
less about the environmental dangers
of chemicals," Bloch said. "But they
want efficiency, safety and to be in
compliance with government
reporting requirements."
Kaplan said the decentralized
nature of the U-M has been an ob-
stacle in collecting data. "The real
challenge is getting people to coop-
erate," she said. "University admin-
istrators don't often have to work to-
gether to change operating
procedures."
Since it is doubtful the pollution
prevention proposal will be com-
pleted by May - when most of the
students involved will be graduating
- Bloch said they hope to create an
infrastructure that will allow their
work to be continued.
"It is important to the project that
we create a document telling others
how to do this," she said.
Bloch said although the U-M
will happen with the finished
proposal.
"I think it is interesting that it is
1992 and this hasn't been done at the
'I think it is interesting that it is 1992 and
this hasn't been done at the university
before. To them, it is cutting edge. To me,
it's ridiculous.'
- Pam Bloch
School of Natural Resources and Environment
graduate student
0
claims. to be serious about imple-
menting the suggestions resulting
from the audit, she is not sure what
university before," she said. "To
them, it is cutting edge. To me, it's
ridiculous."
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