Irrie lending 5%, at six-y Co., Chemical Bank, Morgan Guaranty Consumer interest rates, however, are not "economists are more bullish on the fl „ ZAP) ^ ,ntere6t Trust Co. of New York, and Marine likely to be affected. "Installment loan economy than businessmen." ■t°I^ [n their l°we#t ,eveI ,n Midland Grace Trust Co. of New York. rates are traditionally stickier than the Tuesdav as major banks A major factor behind the prime rate Large banks in Chicago, San Fra.icisco, and prime rate on the theory that the consumer cuts has been recent action by the Federal fCw trimmed their prime Philadelphia also followed suit, but Bank is not as knowledgeable about changes in Reserve, which has been pumping huge ►* . cent to 5 per cent. of America - the nation's largest - still interest rates as businessmen, and is less J^bL their minimum lending held to the 5'/« per cent level late Tuesday. likely to shop around," said Irwin Kellner, sums of money into the banking system K,li corpora" '"Wram 1T>e reductions come on the heels of a associate economist Hanover Trust. at Manufacturers through the purchase of government securities. similar cut announced last Friday by Irving Trust Co. First National City Bank recently Also, he pointed out, consumer loan This is one of the main reasons short fcty ml® 111 rec"1' Tk,*' pared its minimum lending charge to 5 1/8 demand is much stronger than business term money rates have been falling. It was t rsu"mks to °?hh per cent. Last October these two banks loan demand. in order to be more responsive to fluctuations in these rates, that Irving " adopted a floating rate, which more Theoretically, a prime rate cut should quickly responds to short-term money spur the economy by stimulating corporate Trust, Citibank, and last week Banker's market raits. expansion. But Kellner noted that "a '/« per Trust adopted a "floating" prime rate 7" al,°' The prime lending rate is considered a cent cut in the prime rate by itself will not directly linked to these money rates. The t»;srpT«"«Tu«d.y VffmMim ""nk' key interest charge since most other corporate interest rates are scaled upward from It. induce "And anybody to borrow if he weren't thinking of borrowing in the first place. right now," Kellner added, stock market showed little reaction Tuesday to the prime rate cuts. Analysts said the action had been anticipated. lliihcturers Hanover Trutt Wednesday MICHIGAN UNIVERSITY STATE STATE NEWS Welcome People on Dacca, Bangladesh, street, ncivs jubilantly greet news that their "president," Sheikh Mujibur Rahman would be released in West Pakistan and be free to return to Dacca. Sheikh Mujibur has been East Lansing, Michigan Wednesday, January 5, 1972 detained over 9 months. AP Radiophoto State to each year after the passage appeal Tri-U Law Suit ruling of another "who willfully damages University ♦Provided for an automatic reduction of the general appropriation by an amount employes and faculty members will be paid out-of-state appropriations, and determine Dearborn institution. campus to a four year annual appropriations bill. property as determined either by university which students will be educated with state The court ruled that the state I" By STEVE WATERBURY Ruled unconstitutional were sections of officials or by the courts." equal to any funds received as a result of constitution expressly denies the Board of an increase in student fees or tuition above funds would render meaningless the state News Staff Writer ♦Prohibited the use of state the appropriations bill that: constitutional provision granting (the Education the authority to require the ♦Prescribed the minimum number of appropriations for the construction of the rate reported on April 15,1971. universities to obtain its approval before Salmon's decision states that these universities) the general supervision of their m County Circuit Court ruling classroom hours to be taught by faculty buildings or the operation of institutions institutions and the control and direction they can expand or establish programs or not expressly authorized by the legislature. sections of the appropriation bill are in JiStricts the power of the State members. ♦Prohibited universities having an ♦Prohibited the letting of contracts for violation of Article Eight, Section Five of of the institution's funds," Salmon's departments, or expand branch campuses. appropriation bill requirement that ■((Education to an advisory capacity the Michigan Constitution. opinion states. The Ulons with the state's three major enrollment of out-of-state students in self-liquidating projects without first faculty members teach a certain minimum This article vests the boards of control of nk will be appealed by the state, excess of 20 percent of their total submitting the project to a legislative Unless the decision is overturned by a number of hours also is under court the three major state universities with the Kty. Gen. Gerald F. Young said enrollment from increasing their committee. higher court, future legislative-university challenge by community colleges. enrollment of out-of-state students. ♦Prohibited the expenditure of "general supervision of its institution and relations will be governed by the principle the control and direction of allexpenditures appropriation funds for payment of wages that once the legislature appropriates funds Kj Mid that the question of whether ♦Provided that out-of-state students must approximately of faculty members or employes, or for the from the institution's f unds," to the three universities, they become the T2hi (he appeal to include other pay a student fee equal to "To hold that the legislature can prohibit Pay Board 75 percent of the cost of Instruction. education of students, who have been property of the boards of control, subject I# of the TrI U Law Suit decision (the universities) from entering into certain m by the universities remains ♦Prohibited the sue of state funds to pay convicted of interfering with the operation to their exclusive control. of the university. construction contracts, prescribe which the cost of instruction for any student "The legislature has no authority to Itourt ruling, if not overturned by a determine which programs will be it, will result in considerable shift ir from the State Board of expanded or established by expenditure of at impasse b and legislature Ikember decision by Judge Marvin to the three Students face the funds," Salmon said. "It can neither directly compel nor prohibit the boards of control from « x sections of the 1971-72 Education Appropriation Act establishing a new program, nor indirectly do so by way of attaching conditions to appropriations." on 1 2% hike bus the general book, i the grounds that the teutional autonomy infringing on the of the three in The decision upheld sections which require the universities to periodically furnish the legislature with budget was WASHINGTON (AP) - at an The Pay Board apparent impasse Tuesday night over how much to cut back a 12 per cent I judge upheld the validity of five for the sales tax had East Lansing information and which require the The University announced Tuesday that pay raise for aerospace workers. ■sections of the act, which also By MICHAEL FOX state sales tax is now being charged for bookstores not vocally protested the universities to use capital outlay funds for were A majority of the 15-member panel was ■challenge by the universities. State News Staff Writer textbooks and other educational supplies special status enjoyed by the MSU the specific purposes for which they were Bookstore. appropriated. reported still determined to cut back the Ifiipee universities, MSU, University Students returning to campus this week sold at the MSU Bookstore in the raise, thereby ordering the board's first International Center. A $1 increase from Terry said that the change will make The court rejected the request of the wage rollback. Ijidiigan, (U-M) and Wayne State face increased costs for textbooks operations easier at the MSU Bookstore fall term on the price of bus passes was a|so State Board of Education to declare that But the ten business and public members Nty (WSjJ), initiated the law suit on purchased at the MSU Bookstore and for announced by Stephen H. Terry, asst. vice because all items, including slide rules and bus passes for the University bus system. the WSU Board of Governors acted illegally were unable to reach agreement after a 1967, amending the complaint art supplies which were previously exempt, president for finance. in implementing new graduate programs daylong meeting on what figure to allow. In the past, the MSU Bookstore was will be charged the sales tax. Gov. Milliken •'We're all over the map," business and a center for urban affairs because the exempted from collecting the 4 per cent signed the bill Dec. 29 with a provision for university did so without requesting or member L. F. McCollum told newsmen. sales tax for the State of Michigan on the immediate effect. H. Boldt. as the obtaining the prior approval of the state Board chairman George luskie's TV speech textbooks it sold. Some 82 per cent of the bookstore's annual $2.3 million revenue in net sales comes from textbook purchases. The Michigan Legislature, debating the Terry explained that the bus pass prices was simply a postponed action because a hike planned for September had been thwarted by the $1 increase in board. The state board also unsuccessfully requested the court to declare that the U-M meeting dragged on past could not decision would be reached. nightfall, said he predict when or whether a Under consideration were agreements by regents lack the authority to expand their Innounces candidacy sales tax for textbooks at the end term, decided the issue over of fall MSU's winter break when it passed a House version of federal price freeze. He said that the bus drivers and other automotive services personnel, however, had received pay raises the United Auto Workers and AFL-CIO International Assn. of Machinists covering about 114,000 production workers at six from contracts negotiated on July 1, and announce my decision to seek the office the sales tax bill imposing the 4 per cent aerospace companies. that the income from the hike was to pay By WALTER R. MEARS sales tax on all textbook sales. Commercial Monday, Virgil Day, a General Electric of president of the United States," the raises. Pop entertainment Muskie said in a statement taped bookstores, especially those on Grand Co. vice president, who is a business P# Edmund S. Muskie performed the River Avenue, had long opposed the The price control commission approved member of the board, said all 10 business Monday at his chilly summer home in the bus pass hike last week, clearing the Pop Entertainment tickets for the Tof presidential candidacy Tuesday Kennebunk Beach. advantage given the MSLT Bookstore in its and public members wanted to cut back ■P. declaring in exemption from the sales tax. way for a 6.7 per cent increase from $15 to "Ike and Tina Turner Revue" and 12 cent raises. Hie five labor a nationally televised Muskie's organization purchased the $16 for passes for those students who "Detroit" will go on sale Thursday at 8 the per w that he seeks the White House to A Senate version of the tax bill, which members wanted the full raise. last 10 minutes of "The Glen Campbell purchases a pass fall term. Winter term f Americans in "A New Beginning." Goodtlme Hour" from CBS to broadcast would have exempted all textbooks from a.m. at the Union, 9 a.m. at Campbell's Five of the six contracts called for a the sales tax at all bookstores, did not passes for those who did not buy a pass fall Smoke Shop and at 9:30 a.m. at Marshall boost of 51 cents an hour in the $4.32 esident Nixon's the announcement. Production expenses . "nistratjon has failed the nation in survive a compromise committee which term increase 5 per cent from $20 to $21. Music in East Lansing. Price is $3.50 and average wage, an increase of 11.8 per cent. brought the total cost to about $32,000. Commuter passes for the Shaw Lane buses L and "cannot take us to the While Muskie was formally settled the discrepancies between the $4.50. The show will be at 8 p.m. on Jan. The sixth contract, calls for an 8 per cent increase 12 per cent from $8 to $9. „ House and Senate version of the bill. It is announcing the campaign he has been 16inJenison Fieldhouse. believed that the legislature would not have 23) inning contender for the waging for more than a year, two of his (Please turn to page presidential nomination rivals were hunting votes in the New bothered to revise the textbook exemption P wu,000 to formally announce the Hampshire and Florida primaries, and a third was preparing for his own declaration of candidacy next Monday. Hubert H. Humphrey of Disqualification Sen. Minnesota, the Democratic nominee in 1968, plans to announce his new bid for the nomination in Philadelphia next Monday. Sen. George McGovern of South represents himself as a minority of only The decision was the result of a hearing Dakota was in New Hampshire Tuesday, By JUDY YATES chosen from the University at-large. Of the held Nov. 29 of an appeal submitted by the one person, the decision states. filing petitions to put his name on the State News Staff Writer 10 students, at least six must be nonwhite Office of Black Affairs. The appeal alleged The decision also states that, in the ballot in the March 7 leadoff and at least five must be women. opinion of the committee, Jaeger gave no presidential primary. McGovern didn t Jaetfer was the top vote-getter with 333 that Jaeger is neither a member of a indication that he has ever before claim he would beat Muskie in that New An appeal against the disqualification of votes in the category designated for minority group nor a representative of a Mark Jaeger, Greenfield, Wise., junior, as minority group. represented or felt a part of the American England contest, but said the favored student representative-at-large to the nonwhite representatives. Eight contenders Based on Jaeger's answers at the hearing, Indian group. senator from Maine "Is going to know Academic Council, Is scheduled to be filed vied for the two positions. the committee disqualified him because he he's been in a really tough fight in this with the All-University Student Judiciary Jaeger classified himself In the category is not a registered member of the Sioux (Please t j page 23) for nonwhites on the basis of his 1/16 today. nation. (The Winnebago Indian group is a 8tSen Hanry M. Jackson of Washington A decision handed down by the Student Winnebago Indian heritage. member of the Sioux nation.) was in Florida, where the second Committee on Nominations finals week of Jaeger was also disqualified because he Fee refund presidential primary will be held March fall term disqualified Jaeger from the does not meet the standards for 14, seeking out the voters at shopping election for student representatives-at-large Nominations classification as a member of the Sioux centers, court houses and factories in held Nov. 18, declared the votes cast for Full-time students who do not wish to nation, the decision states. the rural, conservative northern section. him null and void and stipulated that a new read the State News or use its services may Students in the Dept. of Elementary and The committee also voided Jaeger's Former Sen. Eugene J. McCarthy of determination of winners for the category certification because he answered that to receive authorization for a refund of the $1 Minnesota entered the 111 now Special Education may submit nominations in which Jaeger ran was to be made. his knowledge there are no Sioux Indians subscription fee in 345 Student Services representatives on faculty presidential primary Monday with a The Bylaws for Academic Governance for student committees of the department to 349 on campus. He does not claim to represent Bldg. through Jan. 14. Students must bring require that 10 of the 32 student the views of such a constituency, but their fee receipt card to receive the refund. 23) Erickson Hall before 5:00 p.m., January 7. (Please turn to page representatives to the Academic Council be \ 2 Michigan State News, East Lansing, Michigan Wednesday, Januarj m. n [associated] news Plan to offer alternatives 1, J 1 press summary From the w(re« of AP and to UC required courses UPI. By S. A. SMITH The rationale accompanying the proposals states that the State News Staff Writer "policy set in motion should enable us, on the one hand, to cope Flexibility in MSU's general education program, long awaited with changing times, the changing nature of the student by undergraduates, i^ay be visible on the academic reform population and a changing resource base, and, on the other hand, / horizon. to maintain and improve an "I intend to lead A academicallysignificant program of to ask you plan to the current requirement that general Q — remove general education." to make America what it was to education be met exclusively within the University College has been taking shape since fall, 1970. On The plan places a charge on the provost's office to maintain Abraham Lincoln - 'The last best Tuesday, a proposal to modify this requirement will be presented to Academic Council. close scrutiny over the master plan. hope of mankind. The plan's target is to give students more choice in According to the timetable established in the first proposal, a Sen. Edmund Muskie fulfilling the general education requirements. Presently, students must take 45 phased implementation of the plan would be initiated in the fall credits of general education, all of which are of the 1973-74 academic year. Leading up to the University College reality of courses. alternatives in general education are a set of criteria for general The proposal is the result of an in-depth study on general education courses to be compiled by the Curriculum Committee education on a University - wide basis made by the Educational and the Office of the Asst. Provost for Undergraduate Education Policier Committee. (1971-72); proposals by all existing colleges for new general The committee will submit to the Academic Council two education courses (1972-73), and a comprehensive plan by the Middle class kids ahead separate proposals. The first details the timetable and enumerates Office of the Provost regarding resource needs and resource On I on a limb the procedures for implementing the more flexible program; the allocation (1972-73). With the prospect of bleak winter days facing himfl Success shows in school children by the time second proposes a baccalaureate degree program in general squirrel takes time out from his food aatherlT they studies. Students will be asked to identify the pattern of general campus reach the age of seven, British educational enjoy one of the tasty morsels he has been storing concluded Tuesday. survey Action on both proposals will be deferred until the February education courses they would select If the options were available. State News photo by Don IT awaj Academic Council meeting. The National Child Development Study, following ths The plan to modify the current general education requirements lives of 17,000 children born in March, retains the minimum of 45 credits in 1958, found general studies, but provides that middle - class children have a 17 - month lead over means other than American thought and their working - class school mates. language, natural science, humanities and social science for students to fulfil! the U.S. ROWS MAIN ISSUE credits. Those from upper middle - class homes with two cars, It proposes that the credit requirements be reasonably equallv color TV and household labor saving gadgets are even divided into "courses leading to the demonstration of further ahead, if their parents are offspring to two or three. happy and limit their in the use of written and oral communication" and three areas (arts and humanities; proficiency general biological, physical or mathematical sciences, and social and behavioral sciences). Paris talks The plau also suggests PARIS (AP) authorizing the University College - The long - Indochina. chance to continue to exist in The turnover of faculty to develop upper-level general education courses and deadlocked prl Drug standards raised additional freshman and sophomore courses, both of which will talks resume Thursday Vietnam peace with the As peace negotiators prepared to resume the talks here independence. On Monday, the White House the U.S. withdraws is i the first of the Vid The serve as alternatives to the Food and Drug Administration launched existing four sequences. return of American prisoners after a month-long break, said this still remained Nixon's a seven-point peace prod program Tuesday in Interdisciplinary courses are encouraged in order to provide seemingly the only major issue confusion persisted as to desire, but it was .lot linked with Washington to protect consumers additional choices for students in meeting general education holding up the end of U.S. the Communists have! from non - prescription drugs that Washington's aims and as to continuation of a residual force in clear repeatedly that 7 may be unsafe, requirements. military involvement in whether the nearly three - year - South Vietnam, as were the and point two - calllil ineffective or mislabeled. old Paris talks had been upstaged prisoners. overthrow of Presidenl The agency said it will begin setting minimum by secret negotiations. These Nixon said that every Van Thieu of South VIJ standards for 26 classes of over - the - drugs, which number between 100,000 and 500,000 and counter OTC Peace Corps will shape secret talks could be held In another part of the world. In the immediate negotiating channel has been used to free the prisoners and linked. are sold in supermarkets and drugstores. background added that "negotiations are of the thrice - postponed 139th under way" on the question. Fathers brawl| Nixon celebrates contract President Nixon, in California to plans to cut force by half WASHINGTON (AP) The session of the Vietnam conference is President Nixon's Sunday television interview. He Asked about this, U.S. officials here ducked behind their rule as boxers bav that they do not discuss any contacts with the Communists meet with Japan's prime minister, money-short Peace Corps began — Joseph H. Blatchford, director Blatchford instructed Kevin of the ACTION agency which O'Donnell, associate director of complete Americ^puHout Indochina to release of U S from other than the BLOEMFONTEINj semipublic Africa (AP)—Two flew to San Diego, Calif. shaping plans Tuesday to reduce oversees the Peace Corps, ACTION for conference sessions. amateur boxers stoppeJ Tuesday to international its 8,000-member volunteer ordered a halt in signing up affairs, to prisoners, who according to Nixon added to confusion it celebrate contracts for three prepare plans for latest American figures total up in the ring and I big force by half and to cancel volunteers, at least until July 1. termination of about 4,000 among peace talks observers crying when they tankers to be built in San about 480. Diego. programs in as many as 15 Applications will continue to be volunteers now on duty in 55 when he implied that the North fathers fighting in the d Nixon's visit to the yards of the countries. accepted. Nixon was asked at his CBS, Vietnamese had rejected a swap The parental dispute foreign countries. Blatchford National Steel and interview whether it could be of U.S. withdrawal for return of free for all when | Shipbuilding Co. wants the plans implemented by assumed that by next two the prisoners. came days before he is to meet mid-February. November's presidential peacemakers started br»| with Prime Minister Eisaku Blatchford took Tuesday's Sato, The State News, the student action, it is understood, because elections "there will ^ whose country has newspaper at Michigan State United States as supplanted the the major shipbuilder around the rim of the Pacific. University, is published and Spring school terms, every class day during Fall, Winter Mondays, Wednesdays and Fridays during Summer Term, and a special Welcome Week edition not only refused to appropriate the $82 million Americans, land, sea or air, no residual force, support of Laotians, fighting in Police pr requested by the Nixon Cambodians or South The Western White in September. Subscription rate is $16 administration but cut funds. House said per year. Member Associated Press, United Press Vietnamese." National has been awarded a $54.6 International, In the last hour before it Nixon replied: "That depends - million contract to build three ton tankers that will be leased to 38,300 Inland Daily Press Association, Michigan Press Associated Collegiate Press, Michigan Association. Association, Collegiate Press adjourned Dec. 17, Congress passed a continuing resolution that would give the Peace on one circumstance . . the situation with regard to our . that is death of sfudel Shell International Petroleum Co. of Second class postage paid at East Corps POWs." Lansing, Mich. Editorial a budget of $72 million. He said that if prisoners are London. The federal government will and business offices at 345 Student Services State Police are continuing from the State University, East Lansing, Bldg., Michigan Both houses passed an stm retained, a residual force their investigation into the death man count] Michigan. authorization bill to give the commission who pay 43 per cent of the cost - a nixuim will have to be maintained in of Kevin J. McCurdy, Royal Oak was i scene, and subsidy aimed at offsettng lower Phones: corps $77.2 million, but the Vietnam, with the possibility of freshman, found frozen to death the police. subsequently ij House appropriated only $68 prices charged by shipbuilders in News 355-8252 million. new air strikes on North Dec. 22 in a wooded area near The fully-clothed boj Japan and Europe. Classified Ads Vietnam. Williamston. 355-8255 The corps hopes that when found in Leroy ToJ There was nothing in Nixon's McCurdy apparently had taken Advertising 353-6400 Congress reconvenes in two southeast of Williamstof Business Office interview that specified the an overdose of barbituates, a 355-3447 weeks the Senate will approve United States was still holding body was on a sheet of j 'Favorite son' withdraws Photographic 355-8311 fho the f»n «77 o miiii™ =„,i «..♦ full $77.2 million, and that ao Qut fw a ,ong.stated type of sleeping pill, fallen under a blanket covere conference committee will goa, Qf asleep and froze to death as a snow. giving the South Vietnamese a consequence. Police theorize he Lt. Glen Perry of the Sen. Robert Taft, R-Ohio said accept that figure. Tuesday in Columbus had been dead seven to ten days State Police said that thei he is withdrawing as a favourite son candidate UNWANTED before his body was found. for President and HAIR? Electrolysis no apparent signs of violfl \ now hopes for a unified delegation j foul play involved in pledged to President Nixon. Hair Removal) Three boys discovered the He said that the consideral thef Last May, Taft said he would be a favorite son aclal, Hairlines, Body 1 body Dec. 22 when they were suicide at this point is I candidate stand looking for a dead deer left conjecture." — a - in for the renomination of 325V? South Grand 484-1632 during the past deer hunting The State Police cird President Nixon. He said he made this move "in the , season. The boys contacted a stories along with a sketchl event that he (Nixon) decided against permitting his news media after the t name" on the Ohio ballot in the May primary. discovered. However, thai "The president's indication on television and other current reliable information, now makes it substantially the east Room was not identified until P by McCurdy's parents. clear that Nixon will allow his name to McCurdy's parents knell appear on the son was at school durii| Ohio ballot as a pledged candidate for the presidential Wednesday's Feature Dinner Christmas brc k, but nomination." BROILED BROCHETTE OF suspicious when he difl SALE BEEF TENDERLOIN 3.25 contact them over a perir time. They responded Helicopters grounded mushroom gravy sketch and later identified son. Pea Jacket soup or juice Lt. Perry said that the! The Navy has grounded all H46 helicopters pending salad Police continuing! investigation of three crashes which killed 14 Marines in $42 two vegetables are investigation ~~d "will folic the Far East, it said Tuesday in Washington. dessert anything there is to Two of the Marine helicopters crashed at sea while beverage regarding McCurdy's dfl Big savings coming your way Perry declined to say whetB operating off the helicopter carrier Tripoli in the Indian not the police have « Ocean. Seven Marines lost their lives in these crashes. The Tripoli was sent into the Indian Ocean, along with two on with this sharp winter jacket Jacoteoris leads, and did not elaborate for fear of "bl^ a double row of buttons the case wide open." nine other U.S. Naval vessels, during the brief India - Pakistan War. down the slightly shaped front. The naval task force never approached closer than several hundred miles to the war zone and is now off The camel-color wool/camel hair/nylon Ceylon. is bonded for warmth. Sizes 7 lightweight to 15. scoctt Ipifts concert Minority enrollment up The Association of Independent 4 J Colleges and Universities of Michigan said Tuesday in Lansing that minority group student enrollment in its members schools topped 8 per cent this year. "The Tuition Grant Program has been a very significant factor in enabling minority group persons to go to independent colleges," said association president John L. Gaffney. The association represents 28 of the 45 colleges and universities in Michigan. private Jnoob^oi lamiary 7tlj at 8 p. in. Total membership at its member schools was up 1.6 union ballroom per cent this year with an enrollment of 43,490 JACOBSON'S OPEN THURSDAY AND FRIDAY $1.00 afcnussion compared with 42,816 last year, the association said. EVENINGS UNTIL NINE * Wednesday, January 5, 1972 3 i, East Lansing, Michigan jburn knocks policy transit alternatives WELCOME BACK SALE! grade separation at the railroad crossing on made by city officials. CATA requested an South Harrison Avenue. 'This is .bill whiting a additional subsidy from the city in the necessary first step in alleviating the amount of $1,519.35 per month. yz* Stiff Writer problem down there," he said. A recent survey made by CATA revealed 1 nf Mining alternatives to Dept- °' Judith K. Lewis, 1516 Spartan Village, spoke as a representative of the Married that earlier estimates of subsidies from the six cooperating metropolitan governments The first go