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One hundredfve years of editorialfreedom
February 6, 1996
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orders president to testify in bank fmud trials
The Washington Post
WASHINGTON - A federal judge in Little
Rock yesterday ordered President Clinton to
provide testimony under subpoena in the bank
fraud and conspiracy trial of a couple who had
been the Clintons' partners in the failed
itewater land development.
.S. District Judge George Howard Jr. issued
the order yesterday directing the Arkansas court
to issue a subpoena for the president. Susan
McDougal and her former husband, James B.
McDougal, who were business partners of the
president and first lady in the Ozarks real estate
venture, had sought the president's testimony in
connection with their trial scheduled to open on
Judge Howard, in his order, said lawyers for
the McDougals and for Clinton should work out
the logistics of obtaining the testimony and
decide whether the president should appear in
person, on videotape or by satellite transmission
from the White House.
Mrs. McDougal is accused of fraudulently
receiving a $300,000 loan that David Hale, a
former Little Rock banker, says Clinton and
others pressured him to make to her in 1986.
Clinton, who has not been charged, has denied
Hale's accusation. Mrs. McDougal had sought
the president's testimony to bolster her conten-
tion that Hale is lying about the circumstances
of the loan, which was backed by the federal
Small Business Administration.
The McDougals and Arkansas Gov. Jim Guy
Tucker were accused by Independent Counsel
Kenneth W. Starr with obtaining $3 million in
loans from federally backed lenders to benefit
themselves illegally. The three were indicted last
year by a federal grand jury underStarr's direction.
They were named in a 21-count indictment
that alleged that a string of transactions made
through McDougal's failed savings and loan,
Madison Guaranty, and Hale's now-defunct loan
company, Capital Management Services, were
designed to defraud federal regulators. Madison
eventually failed, costing taxpayers as much as
$65 million. Hale has said his small business
loan company, which received federal backing
to make loans to disadvantaged borrowers, was
improperly used by prominent members of the
Arkansas Democratic "political family" in the
1980s to help them with financial problems.
Hale made the accusations after being indicted
for defrauding the SBA and
has since become a princi-
pal cooperating witness in 4
the Whitewater probe.
Howard, who was ap-
pointed to the bench by
President Carter in 1980,
said in his order that "after
cautiously and heedfully
reviewing the defendants'
request, the court is per- Clinton
suaded that the request is
made in good faith and is reasonable."
B" Stephanie Jo Klein
V Staff Reporter
Due to reports of mistreating office
employees and news of her low con-
gressional attendance records, U.S.
Rep. Barbara-Rose Collins (D-Detroit)
has been under fire from both daily
Detroit newspapers this week.
Collins' Chief of Staff Meredith
Cooper called the allegations reported
in both newspapers "ridiculous," sug-
ting the coverage was revenge for
d ins' support of striking newspaper
Cooper would not comment on fed-
eral grand jury subpoenas recently is-
sued to office employees.
"It's really difficult for me to believe
people are still dredging this stuff up,"
Cooper said in an interview with The
Michigan Daily yesterday.
"She supported the strikers in the
Free Press and the News," Cooper
*ed. "Maybe (the negative cover-
age) is retaliation."
She further addedthat Collins is "em-
"Maybe she's informing her con-
stituents more than the media want
them to be informed," she said.
Officials from both the Detroit Free
Press and The Detroit News denied
"Ourcoverage has been based on com-
Ants raised by people who worked for
(Collins) and thought they had been mis-
treated," said Bob McGruder, executive
editor of the Free Press.
Robert Giles, publisher of the News,
said Collins was one of several Demo-
cratic officeholders to refuse to talk to the
paperthroughoutthe seven-month strike.
"It's hypocritical to complain about
information in a story when Congress-
See COLLINS, Page 2
Ann Arbor I
By Will Weissert
Daily Staff Reporter
Hooters, the restaurant chain
known nationally for waitresses in
skimpy outfits, wants to expand in
Michigan and is considering Ann
Arbor as a possible site.
The company is considering the
city, but officials for the restaurant
said it is not interested in the Univer-
and its students.
Tad Dixon, public relations direc-
tor for the Atlanta-based Hooters, said
the company was scouting all the
major cities in the state and that Ann
Arbor was just one of those possibili-
He did not, however, believe that
Hooters would be attracted to Ann
Arbor because of the potential Uni-
SOur market has been between the
ages of 21 to 35," Dixon said. "We
target male clients who are those ages.
Most students are not 21."
However, some students believe
that, like it or not, a Hooters in Ann
Arbor would attract students. "I don't
Alliance Four Justice members Sherise Steele, Wayne Alejandro Wolbert, Ziehyun Huh and Andrew Adams Ill discuss ways to
Improve the group during a public forum yesterday.
Aliance holds forum; students
11 Mask questions gve feedback
The Washington Post
WASHINGTON - President
Clinton yesterday dressed up his last
budget offer to Republicans in new
rhetoric and submitted it as his 1997
proposal to balance the budget, holding
off until the turn of the century the bulk
of his spending cuts.
Clinton's budget proposal, required
by a legal deadline, gives new meaning
to the "dead-on-arrival" budget cliche
from the years Republican presidents
submitted doomed proposals to Demo-
With the White House and Congress
deadlocked over this year's budget and
the government running on temporary
spending measures, the outline for the
next fiscal year beginning Oct. 1, a
month before the presidential and con-
gressional elections, has little to do
with policy and everything to do with
The proposal presents a bare-bones
outline of a $1.64 trillion budget for
1997 that offers modest reforms in en-
titlement programs, large cuts in do-
mestic programs and small tax breaks
for the middle-class.
The 20-page outline released yester-
day - compared to the usual 2,000-
page plus budget submission in a nor-
mal budget year-was nearly identical
to the offer Clinton put on the table the
first week of January when he and GOP
congressional leaders were still negoti-
ating. Republicans charged the White
House refused to make serious offers
on the most contentious issues- Medi-
care savings and tax cuts - and called
off the talks.
The outline projects the 1997 deficit
By Katie Wang
Daily Staff Reporter
More than 50 students gathered in the
Union last night to learn more about the
Alliance Four Justice - a coalition of
major campus minority student groups
- and to offer feedback about the
group's recent demands.
Emphasizing that the forum was not
a time to debate the demands the Alli-
ance made to the University two weeks
ago, but instead an opportunity to offer
support for the group, members of the
Alliance fielded questions and sugges-
tions from the audience.
Many of the students expressed in-
terest in knowing more about the Alli-
ance and how to contribute to its cause.
Wayne Alejandro Wolbert, co-chair
ofAlianza, suggested that students "read
the demands and have an open dialogue
about them with friends or classmates."
The Alliance, which is composed of
Alianza, the Black Student Union, the
National Association for the Advance-
ment of Colored People, the Native
American Students Association and the
United Asian American Organizations,
first made their list of demands public
two weeks ago in an open letter to the
Focusing more attention on the re-
tention of students of color and the
"immediate establishment of ethnic
specific cultural centers" were just two
of their many demands.
LSA senior Sherise Steele, speaker
for the BSU, said the cultural centers
are necessary because the "Trotter
House, which was once considered the
'black' house on campus, no longer
suited the needs of the minority student
"As the black population doubled
(from 4 percent to 8 percent) the house
has not gotten larger," she said.
Although Vice President for Student
Affairs Maureen Hartford, Vice Pro-
vost for Academic and Multicultural
Affairs Lester Monts and two other
administrators requested to meet with
the group, Alliance members declined
the offers, saying that they wanted to
See ALLIANCE, Page 2
Clinton's 1997 budget
U The proposed 1997 budget,
required by a legal deadline yis
slated to cover the next fiscal year,
which begins Oct. 1.
r A "bare-bones" outline, the budget
is set forth on 20 pages. In a usual
budget year, the proposal would
cover more than 2,000 pages.
Clinton's $1.64 trillion budget
offers modest reforms in entitlement
programs, cuts in in domestic
programs and small tax breaks for
the middle class.
will be $160.6 billion, up slightly from
this year's estimated $154.4 billion
shortfall. Beginning in 1998, the presi-
dent foresees declining red ink until
2002 when he projects a $3.7 billion
As he did in his last offer, Clinton
proposed to trim growth in Medicare by
$124 billion, compared to $168 billion
in the last GOP plan. He would save
$59 billion in Medicaid, compared to
$85 billion in the GOP plan. Domestic
spending other than entitlement pro-
grams would be trimmed by $297 bil-
lion, about $51 billion less than the
By Anupama Reddy
Daily Staff Reporter
LSA faculty members met yesterday
and approved a plan to adopt new re-
quirements on undergraduate admis-
sions for the 2000-2001 academic year.
Students of the 2000-2001 entering
class will be expected to complete 15
units ofminimum requirements, includ-
ing four years of English, two years of
a specific foreign language, three years
of mathematics, two years of science
and three years of history.
Addressing the faculty members yes-
terday, LSA Associate Dean Lincoln
Faller said, "The impetus behind the
motion is to clarify the admission re-
quirements, so that they're clearer to
the University and the schools."
Faller, chair of the LSA Curriculum
Committee, said the emphasis of the
new motion was to define the kinds of
mathematics and science courses re-
quired and to add a foreign language
He also said the proposal followed
the recommendations ofthe Presidents'
Council of the State Universities of
Michigan to set a common set ofadmis-
sions for all universities in the state.
University Director of Undergradu-
ERS' IN ANN AroR?
al chain may open new
ocation; reaction mixed
been a great state
-- Tad Dixon
Hooters public relations
hire male wait staff.
Dixon said the controversy sur-
rounding Hooters would not affect
the company's decision about an ex-
Oplira Edut, publisher of the Ann
Arbor-based Hear Us Emerging Sis-
ters (HUES) Magazine, said she was
disappointed to hear of the possibility
of an Ann Arbor Hooters.
"It goes to show that even in a
college town where women try to edu-
cate themselves without taking their
shirts off, there's more money to be
made if women carry cocktails and
show off their bodies," she said.
Edut said she did not want to say
that women shouldn't work in places
like Hooters, but that there are better
"I don't want to take jobs away
from women and say it's not good to
work in those kind of places," Edut
said. "I think women have the right
to work wherever they want, but it's
sad to see them work at those
She said HUES, which has a large
other Hooters branch scheduled to
open this March in Taylor.
Dixon said that the company is plan-
ning to wait until the Taylor store is
"settled into the community" before