2R ---R 'Er-t *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 fieoxt Of The tUnl e ytouad--- Seven mion~eight huncredto5 d l