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April 03, 1995 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1995-04-03

Disclaimer: Computer generated plain text may have errors. Read more about this.

2R ---R
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*rnr

Weather
Tonight: Mostly cloudy,
lows in the 30s.
Tomorrow: Snow
showers, high around 30%.

One hundred four years of editorial freedom

Monday
April 3, 1995

--------- ----

I

-Play ball! Opening day set for April 26

CHICAGO (AP) - The longest and costliest work
stoppage in the history of professional sports ended last'
night when Major League Baseball owners accepted the
union's offer to play without an agreement.
The season, which had been scheduled to start last
night, will begin April 26 and each team will play 144
games, 18 fewer than the usual.
"Anyone who has gone through this eight-month expe-
rience will let it serve as a poignant reminder that we have
a responsibility to make sure it will never happen again,
certainly in our lifetime," acting commissioner Bud Selig
said after a 4 1/2-hour meeting.
Players may report voluntarily starting Wednesday to
training camps in Florida and Arizona, although some are
expected to start trickling in today. The mandatory report-
ing date is Friday.
The strike wiped out the final 52 days and 669 games of

the 1994 season and forced the cancellation of the World
Series for the first time since 1904. It also wiped out the first
252 games of this season, raising the total games lost to 921.
"It was not a surrender," Selig said. "The players were
on strike. They made an unconditional offer to come back,
and we accepted that offer."
However, the owners did not obtain a no-strike promise
from the union, leaving open the possibility that players
could walk out again late this season if owners again threaten
to impose a salary cap.
"I think it's clearly a step in the right direction," union
head Donald Fehr said. "If they had voted for a lockout, it
would have been a clear indication they didn't want peace -
at any price."
President Clinton, who failed two months ago in a
personal effort to end the strike, said: "Today's decision is
good news for the game of baseball, its fans and the local

economies of the cities where baseball is played."
The sides still must work toward a deal that would
replace the collective bargaining agreement that expired on
Dec. 31, 1993. Players, who walked out last Aug. 12, ended
the strike Friday - the 232nd day - after U.S. District
Judge Sonia Sotomayor issued an injunction forcing owners
to continue the work rules of the expired agreement.
"The clubs hope that the 1995 season - including the
postseason - will be played without interruption," Selig
said. "We hope our fans never again have to go through the
heartache we've endured the last eight months."
Baseball's eighth work stoppage since 1972 was caused
by the owners' demand fora salary cap. They tried to impose
it last Dec. 22, but withdrew it on Feb. 6 after the National
Labor Relations Board threatened legal action. When teams
refused to restore the old rules, the NLRB filed a complaint
on March 15 and then obtained the injunction.

Detroit Tigers' manager Sparky Anderson enjoys a pipe
at home yesterday before leaving for spring training.

IRS says '
owes $7.7M
in back taxes

SARA ST1ii.AN/Dai!y
Mack Finnley and Sommer Johnson light one up during Saturday's 24th annual Hash Bash festivities. Turnout for the event was estimated at 3,500
people, down from last year's attendance of 5,000.
HBash a 'm-o re peaceful'rally

By Ronnie Glassberg
Daily Staff Reporter
The Internal Revenue Service says
the University owes it $7.7 million in
income taxes on a number of unre-
ported activities over three fiscal years.
The University, however, claims
these revenues are not taxable and that
it should receive a $536,734 refund. In
response to the IRS audit, the Univer-
sity filed a petition last Monday with
the U.S. Tax Court in Chicago.
In the petition, University attor-
neys claim the IRS "erred in arbi-
trarily, unresponsibly and capriciously
increasing (the University's) unrelated
trade or business gross income" on a
variety of operations, including the
University golf course and skating at
Yost Ice Arena. The University also
claims IRS agents improperly disal-
lowed deductions for the same opera-
tions.
Whether the University's tax-ex-
empt status for its educational mission
includes outside business operations is
in contention.
"Generally in the past, activities
related to the University's mission have
been considered exempt," said Vice
President for University Relations
Walter Harrison. "What is education
and what isn't? That's basically the
question. None of these areas are spelled
out in the tax code so a lot of what this case
is about is dealing with those sorts of
things."
Harrison said if the University is

Revenues
The IRS says the University
improperly reported expenses
and revenues in the following
areas:
University golf course
Rodrick Farms Golf Course
M Go Blue Shop
Flint and Ann Arbor recreational
facilities
Major campus events, Ann Arbor
Computer center
Yost Ice Arena skating
University Hospitals laboratory
expenses
Cost of goods sold and expenses
at hospital pharmacy
Expenses and revenues for Track
and Tennis Building
Hockey radio revenues
Crisler Arena scoreboard
revenues
Touchdown Publications
revenues
forced to pay the back taxes, it will
mean higher tuition or user fees.
"The money has to come from
somewhere," Harrison said. "I don't
think it's likely anyone will win or lose.
What we're asking for is clarification
of the tax code."
IRS spokeswoman Elcy Maccani
said she could not discuss the dispute. "It
is our policy that we wouldn't comment
on any pending litigation," she said.
See TAXES, Page 7

By Michelle Lee Thompson
aily Staff Reporter
In comparison to previous rallies, Saturday's
Hash Bash was relatively quiet, University officials
said this weekend following the 24th annual event.
The University's Department of Public Safety
estimated the crowd at only 3,500 people-compared
to last year when 5,000 people flocked to the Diag.
In contrast to last year's 108 arrests by DPS,
officials arrested only 54 people Saturday, most for
marijuana possession, which is a misdemeanor. In
addition, DPS cited 24 people for such infractions as
$>pen intoxicants, which is a civil infraction. One
runaway juvenile was found and taken into custody.
"We're having fewer arrests, and we're also
noticing less alcohol consumption," University
spokeswoman Julie Peterson said during the event.
She added that most of the arrested persons were
not University students. "It seems to be a more
peaceful crowd than previous years, and we're
pleased about that."
Saturday's weather was uncharacteristically cold
qor April - the temperature lurked in the high 40s
and low 50s throughout the day.
"Yes, it's a little cold, but we're here on the Diag,"
said marijuana legalization proponent Chef Ra.
Organizer Adam Brook opened the rally by
shooting down rumors that the event would be the
last Hash Bash.
Members of Help Eliminate Marijuana Prohibi-
tion A2, a student group that organized this year's
rally, said they intend to continue planning future
nnual rallies. HEMP A2 members kept low-key
uring the event, but assisted in fundraising and
obtained the Diag use permit.
To obtain a permit, HEMP A2 had to submit a
$738 clean-up deposit to the University before the

Org anizers refute
rumors of hemp
rally's demise
By Michelle Lee Thompson
Daily Staff Reporter
The first thing organizer Adam Brook did Satur-
day at Hash Bash was quell rumors that the 24th
annual event would be the last Hash Bash to take over
the University's Diag.
"A lot of you may have heard that this year was
going to be the last Hash Bash. No!" Brook screamed
to 3,500 cheering gatherers.
"That was the story The Ann Arbor News
wrote and it got carried out all over on the wire
lines. You know what I got to say to you - April
Fools!"
The News reported last week that the event was
"losing steam" after 24 years of congregating on
the Diag at "high" noon on the first Saturday in
April. The story was sent out over The Associated
Press wire service.
The News based its report on Brook's recent
alignment with Help Eliminate Marijuana Prohibi-
tion A2, a student group that organized this year's
event. Members said they plan to uphold the tradi-
tion started by the National Organization for the
Reform of Marijuana Laws, which Brook had led
for many years.
NORML stopped sponsoring such smoke-ins to
retain its tax-exempt status, after sponsoring Hash
Bash for about 15 years.
See RUMORS, Page 2

Avoiding court battle, city
agrees to pay YMCA loan

An officer confiscates marijuana from a Hash
Bash attendee during Saturday's rally on the
Diag. This year, 54 people were arrested.
rally. Brook and other speakers encouraged gatherers
to clean up after themselves so that the group could
reclaim part of the deposit.
At the start of the rally, Brook spoke aboutthe laws
governing marijuana use on campus and Ann Arbor.
"I know a lot of you came out here to smoke
dope, but I gotta tell you ... this is not the city of
Ann Arbor. ... The police officers on campus will
arrest you for smoking marijuana, and we gotta
See HASH BASH, Page 2

By Tali Kravitz
and Maureen Sirhal
Daily Staff Reporters
After months of deliberation over
the YMCA loan settlement, the city of
Ann Arbor has agreed to follow through
on its original promise to pay the
YMCA's $1.6 million defaulted loan.
In a special session Thursday night,
the City Council reluctantly decided
by an 8-12 vote to pay off the loan. The
original agreement was made in 1988
between the city of Ann Arbor and the
YMCA to add 63 rooms onto the exist-
ing structure at 350 S. Fifth Ave.
Under the settlement, the city will
pay off the remainder of the loan

equaling $1.2 million by April 15.
Miller, Canfield, Paddock and
Stone, the law firm that represents the
city and the YMCA, also will cover
part of the loan.
The YMCA and the city have sparred
on the issue since the original loan
agreement. After construction was
completed, the organization confessed
its inability to repay the loan.
The YMCA then approached the
city to fulfill its part of the agreement
and to repay the $1.6 million owed to
Great Lakes Bank Corp. The city re-
fused to cover the loan after being told
by attorneys from the firm Hardy,
See YMCA, Page 2

'U' rakes in cool $7.8M by lending out logo to merchandisers

By Cathy Boguslaski
#aily Staff Reporter
From boxer shorts to coffee mugs,
fine china to bumper stickers, Univer-
sity insignia like the block "M" and
Michigan wolverine can be found on
almost any type of memorabilia imag-

percent of the product's cost in ex-
change for use of the logo, said Tirrell
Burton, licensing director and associ-
ate athletic director.
That adds up to about $7.8 million,
almost all of which makes its way to
athletic department scholarships, Bur-

reviews the proposal, including ev-
erything from the product design to
the marketing plan, Burton said.
"There are certain things we won't
approve," Ketelhut said. "We won't
allow anyone to put our symbols on
liquor bottles. We also don't want it

"We wouldn't allow our marks on
anything that portrayed a certain ethnic
group in a bad light. We have to main-
tain the integrity of the University," he
added.
Not all vendors, however, license
their products. Trademarks are often

Emblem Incom
The University earns
about a 7.5 percent
royalty for any item
sold containing a
Michigan logo. This
fra isanar I4 pr~init

le
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Seven mion~eight huncredto5 d

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