The Michigan Daily - Friday, JuVly 27, 1984 - Page 3
GOP selects mayoral candidate
By ERIC MATTSON
Three weeks after Democrat Edward Pierce an- -
nounced his candidacy for mayor of Ann Arbor, the
Republicans unveiled their first choice for the city's
top elected position.
Former City Councilmember Richard Hadler an-
nounced that he would seek his party's nomination in
the February primary, but so far, it doesn't appear as
if Hadler will face much competition.
NONE OF THE Council Republicans have ex-
pressed an interest in the position, and GOP Mayor Ap
Louis Belcher has already said he will not run for has
another term. has
"I pretty well decided to hang up the spurs," said H
Belcher, who has been mayor for six years. Hadler tee
was selected by a local Republican committee which bes
included Belcher. P
"Rick was right at the top. He was number one," can
Belcher said. Res
BUT COUNCILMEMBER Jeff Epton (D-Third int
Ward) wasn't too impressed with the 62-year-old Fir
retiree. "I never heard of the guy before ... this guy for
is nobody's first choice," he said. B
Hadler admitted that he is the underdog in next tag
Continental Illinois
gets $4.5 billion
federal loan
From AP and UPI
WASHINGTON - The government forged yesterday a
record $4.5 billion bail-out of Continental Illinois National
Bank & Trust Co., whose high-flying lending practices left it
teetering with a huge portfolio of bad loans.
The deal, which has some of the appearances of
nationalization, immediately drew some complaints in
Congress that federal regulators had fashioned the
arrangement behind the public's back.
BUT THE regulators defended their action, contending it
was the best way to bolster the ailing Chicago giant and
maintain stability in the banking system.
William Isaac, chairman of the Federal Deposit Insurance
Corp., said the government stepped in to save Continental -
once the eighth largest bank in the nation - in part because it
held deposits from 2,100smaller institutions.
"You would have had scores of small bank failures if Con-
tinental Illinois had been handled differently," he said.
THE RESCUE plan devised by the FDIC, the Federal
Reserve and the comptroller of the currency gives Continen-
tal, which almost foundered under billions of dollars in bad
loans, a long-term line of credit, freedom from its worst loans
and a new management team led by retired Standard Oil
chairman John Swearingen.
The multibillion-dollar bailout will be financed with FDIC's
funds - supplied by banks in the form of insurance
premiums - and does not involve tax dollars, Isaac said.
Continental's management and shareholders will be
treated as if the bank collapsed, he said, and the bank's
assets will be reduced to $30 billion.
UNDER THE rescue plan, the FDIC can lay claim to 80
percent of the bank's stock and it has veto power over new
bank directors.
In turn, the FDIC will take over $5.1 billion of Continental's
shakiest loans, now actually worth as little as $3.5 billion and
assume a $3.5 billion loan the Federal Reserve Board gave
Continental when its troubles first came to light.
Treasury Secretary Donald Regan did not support the plan,
arguing that it involved "an unauthorized and unlegislated
expansion of federal guarantees." But after being told by the
Justice Department the plan was legal, Regan did not move
to block it.
WHITE HOUSE spokesman Anson Franklin said, "It
seems to be in the best interest of depositors and the banking
industry, although the Treasury Department has some
reservations."
The plan will take effect within 60 days if Continental
shareholders support it. They must choose between getting 20
percent of a bank controlled by the federal government or all
of a bank that would be declared insolvent.
A key element of the plan is the demotion of the present
management and infusion of new financiers into the bank's
top posts.
Swearingen, retired chairman of Standard Oil Co. of In-
diana will become chairman and chief executive officer of
Continental's holding company. William Ogden, a former
vice chairman of Chase Manhattan Bank, will be chairman
and chief executive officer of the bank.
r
'I've never heard of the
guy before. . . this guy is
nobody's first choice.'
-Councilmember Jeff Epton
ril's election since Pierce, a popular physician who
been in the political limelight for several years,
greater name recognition.
ladler said he accepted the Republican commit-
's invitation to run because "I thought I had the
st chance of beating Edward Pierce."
PIERCE was the first Democrat to announce his
ndidacy for mayor, but University Natural
ources professor Bunyan Bryant also threw his hat
o the ring, and Councilmember Larry Hunter (D-
st Ward) is reportedly also considering running
the city's top spot.
Belcher said the Republicans will have an advan-
e over the Democrats because they can unite
behind Hadler quickly, whereas-the Democrats still
have to fight amongst themselves.
"Our caucus is 100 percent behind Richard Hadler,
and their caucus is not 100 percent behind Edward
Pierce, Belcher said. "Rick will win it, too."
EPTON, however, said the primaries will actually
help the Democrats come together since the
primaries are still six months away. "It would be
meaningless for the Democrats to unite behind one
candidate. The Republicans are just grasping for
straws," he said. "I'm not afraid. Maybe they are."
Epton said the primaries will help the Democrats
find Hadler's weaknesses. "We don't know who this
guy is. He might be a complete mediocrity," he said.
Hadier was a Councilmember from 1971-1975, and
has been very active in behind-the-scenes GOP fund-
raising activities. He retired from Hoover Corp. three
years ago, which gives him the advantage of plenty of
time to campaign.
Councilmember Gerald Jernigan (R-Fourth Ward)
contemplated running but decided against it because
he didn't have enough time.
CAROL L. IFAN.AVILLA/DaIy-
This cigarette machine, with a newly installed facade, illustrates the complete changeover of the
Second Chance.
'The Chance' trades
live rock for dancing
By THOMAS HRACH
It seems the rock and roll music of the late six-
ties and early seventies is gone for good in Ann
Arbor, and making its way into the market is the
music of the eighties. The Second Chance, last
refuge of hard rock music in town, has closed its
doors and will reopen as The Nectarine
Ballroom, a New York style video dance club
next week.
Sidewalk patrons of the Art Fair, curious as to
what happened to the once famed rock bar, quiz-
zed managers selling drinks on the street as to
what became of the old Second Chance. The an-
swer was to wait for the opening to find out the
wave of the future for dance music.
THE CLUB will utilize the techniques of a New
York City style dance bar to attract patrons, in-
stead of the live music which was the staple of
the oldSecond Chance. Faced with dwindling
crowds, but still a profitable business, John Car-
ver, owner of the building on East Liberty,
decided to make the switch because "The Second
Chance had become stale with the same format
for more than ten years."
"We really felt locked in night after night of
the same kinds of music," said Carver. "The
new format allows us to appeal to a broader
cross section of people, and we all just got tired
of the same crowds."
The half million dollar remodeling of the
building will wind down this week. The most
noticeable changes are a large projection screen
and 50,000 ft. of electrical wire for the extensive
lighting system.
CARVER'S TRAVELS to New York City gave
him the idea for the club which basically uses
grey, nectarine and purple with varied lighting
to set the mood for each piece of recorded music.
Each night of the week the club will advertise
different disc jockeys playing varied styles of
music to bring in the dance crazed patrons.
Rita Shelide-Abel, program director for the
ballroom, called the new club's format "popular
dance music, not easy listening, but certainly not
rock and roll." The Nectarine Ballroom will play
danceable music from a wide range of years.
The Nectarine Ballroom will open its doors as
a 21 bar, unlike most of the other local bars. The
high age restrictions combined with a $5.00 on
weekends and $3.50 on weekdays admission
could keep many students away from the club.
CARVER PLANS to keep the 21 age
requirement at the Nectarine Ballroom initially
to see how well it works out. According to Ann
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