Clearing
Clouds should be clearing
today with highs in the 60'
and low around 30.
Wednesday will be sunny
with high in the 60s.
Play preview
The speech department will
present the play To Be
Young Gifted and Black' this
week. For a preview, see
page 4.
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Serving the students and the University community since 1893
Voluma 87, Issue No. )j 'f(
Tuesday, March 18, 1880, Chapel Hill, North Carolina
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Federal aid decrease
in Amtrak allocations
By SEAN DYER
StafT Writer
As a result of President Carter's
proposed anti-inflation program, the
Amtrak Corp. is expected to lose $50
million in federal aid in the next fiscal
year, a company spokesman said
Monday.
Because of the funding cut, Amtrak
either will have to shift its timetable for
purchasing new cars or defer other
scheduled equipment purchases, said
Amtrak official John Jacobson.
The reduction in federal aid
represents an 8 percent drop in the $630
million the company receives annually
through the U.S. Department of
Transportation. The move will hinder
Amtrak's ability to purchase new cars,
which was hoped to help the railway's
ailing service, Jacobson said.
Before Carter's inflation speech last
week, Amtrak had approved the
purchase of 125 new passenger cars and
an additional 25 food service cars at a
cost of $150 million in order to
accommodate an expected growth in
ridership. ' .
The Carter proposal is not expected
to have a significant effect on current
operation, but could slow the
equipment modernizing process. The
company expects its largest ridership
increase in the Northeast.
Amtrak currently is spending $2.5
billion on refurbishing its northeast
corridor, serving passengers from
Washington, D.C. to Boston. The
corridor is responsible for 50 percent of
Amtrak's national ridership, which
increased only .1 percent in 1979
because of a 5 percent decrease in
northeast corridor traffic, where
extensive track work has limited
service.
Amtrak was forced to cut 5,000 miles
from its 27,000-mile network in 1979
because of mounting deficits and a
congressional mandate. With recent
federal backing, the company has begun
expansion of corridor service
connecting major metropolitan areas. .
Congress has urged Amtrak to start
work on 18 new corridors, including
Washington, D.C. to Richmond, Va.,
Savannah, Ga. to Atlanta, and Atlanta
to Nashville, Tenn.
"Congress is behind us 100 percent on
the emerging corridors," Jacobson said
of the 80-100 mph track that will be
installed under the new system. "We feel
the future is in corridor service as the
need for transportation alternatives
grows in the coming years," he said.
Amtrak's order for 1 50 new cars came
as a solution to its aging fleet of trains,
many of which were built during World
See AMTRAK on page 2
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Amtrak's Montrealer takes a turn of the tracks
.the corporation is expecting a cut in federal aid.
Carter's program may
affect town bus growth
By CINDY BOWERS
StafT Writer
President Jimmy Carter's proposed
$265 million cut in mass transit capital
improvement grants could endanger
plans for expansion of the Chapel Hill
bus system, town officials said Monday.
The cut is part of an across-the-board
budget slash proposed by Carter in a
speech on the economy last week.
The funding cut probably would not
cause a reduction in the town's current
service level, since it would affect
funding for the purchase of new buses
and equipment, not operation
assistance. Bill Callahan, Chapel Hill's
assistant director of transportation,
said.
But it could hamper planned
expansion of the bus service, including a
split of the crowded C-route in
Carrboro that is planned for April, he
said.
. I would say we would be hard
pressed to expand (services) with a cut
in funding," he said.
The grant cut would not affect two
recently approved grants for 21 new
buses for the town's system, since the
cut is proposed for the fiscal 1981
budget, he said. Funding for 16 buses
was awarded to the town in December,
and another grant for five buses was
approved Friday, Town Manager Gene
Shipman said.
But problems would arise when the
tow n tried to obtain funds for more bus
replacements Shipman said.
"We do have about 15 more buses
that need replacement after (this ear),"
he said. "A reduction in funding would
certainly have an impact on the town in
that way."
Callahan said the 15 buses scheduled
to be replaced next year could be used
longer if necessary.
"The majority of our old fleet could
continue to operate w ithout problems,"
he said. "But we're running almost
without spares. We run the risk almost
daily that if a bus breaks dow n w e might
not have one to replace it with."
Of the buses now in use, 22 were built
before 1960, Callahan said.
"These vehicles have a higher
breakdown ratio," he said. "It's hard to
get some parts for them."
The proposed cutback would make
replacement of those buses almost
impossible next year, Callahan said.
Some other bus expansion plans that
might be jeopardized by a reduction in
federal funding include plans for service
between Chapel Hill and out-of-town
locations like Hillsborough, South
Square Mall in Durham and the
See BUS on page 2
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Zeta Psi member Andrea Martin gets carried away by pushy Winn Price
in their enthusiastic drive to roll some contributions together for the
Association of Retarded Citizens Monday. People who were stopped on
campus by the sorority sisters were asked to go to the Pit where they
could donate money to the organization.
STOW dwellers
narrowly approve
Value of dollar rises
Gold prices drop; stocks record big loss
NEW YORK (AP) The price of gold plunged below
$500 an ounce for the first time this year and stock prices
recorded their biggest loss of 1980 on Monday amid
expectations that President- Carter's anti-inflation
program could propel the economy into a recession.
But the prospect of higher interest rates helped the
dollar on currency markets as foreign investors "bailed
out of gold to get into dollars," a bullion dealer said.
Stock market analyst Larry Wachtel of the brokerage
house of Bache Halsey Stuart Shields Inc. said overseas
investors believe "this profligate country is finally
coming to grips with reality."
But in the United States, Wachtel said, "there was a
sense of anticlimax" on financial markets among
observers who felt Carter's program does not go far
enough to slow the nation's 18 percent -a-year inflation
rate.
On Wall Street, the Dow Jones average of 30
industrials tumbled 23.04 points in light trading to
788.65. The loss was the largest for the widely watched
stock average since if fell 26.45 points last Oct. 9, and the
close was the lowest since the average stood at 23.5 1 on
Dec. 18, 1978.
Bond prices rallied as stocks fell, reflecting
anticipation that the Carter program would eventually
bring long-term interest rates much lower, but also
would sharply slow the economy.
"It w ould be well enough to get out of gold now," said
John M. Fraser Jr., senior vice president in charge of
precious metals at Rhode Island Hospital Trust
National Bank in Providence.
But "the gold market is anticipating the ultimate
impact" of the Carter anti-inflation program will be felt
"three to six months from now," said Fraser, whose
bank is a major gold dealer.
Carter's "package has been better received abroad
than in the United States. Given a chance, it could well
do the trick," said a currency trader here.
The Carter program included steps to cut government
spending, restrict bank lending and consumers' credit
card borrowing moves many analysts believe could
push interest rates past their current record levels and
dramatically slow the economy.
Although top-ranked businesses are paying 18'2
percent a year on loans at major banks, less credit
worthy businesses and investors face interest rates of 20
percent or more.
The dollar gained more than a cent against several
major currencies and reached levels not seen in some
cases for nearly two years.
Gold lost $49 an ounce in London to close at $477.50
and was down $35 in Zurich, winding up $489.00. The
decline put the precious metal at its lowest price since
just before last Christmas and erased the effect of
January's gold rush, when the metal rose to a peak of
$875 an ounce on Jan. 21 in Geneva trading.
Bullion and currency dealers attributed the
developments to the anti-inflation package introduced
by President Carter and Federal Reserve Chairman Paul
Volcker last Friday.
In Tokyo, where the business day ends before
Europe's begins, the dollar closed at 249.425 yen, up
from 248.750 yen Friday and close to its high in recent
years.
The British pound, riding high for a year on the
strength of North Sea oil, slipped in London to $2. 1 870,
down from Friday's $2.2155.
Late dollar rates in other European centers, compared
with Friday's late rates, and the last time the dollar was
this high, were:
Paris 4. 37625 French francs, up from 4.27925 June
18, 1979
Milan 872.625 Italian lire, up from 854.85 May 1978
London silver prices, which peaked at $49 an ounce on
Jan. 18, fell to $20 an ounce from $24.25 Friday.
1 J
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omb threat suspects revealed
residence college
By LINDA BROWN
Staff Writer
Seven dorms voted Monday to accept a constitution changing
their independent organizations into a single residence college.
Preliminary figures showed that residents of Spencer, Triad
(Alderman, Kenan, Mclver) and Old Well (Old East, Old West,
Carr) voted 238-207 to accept the constitution and become
STOW Residence College.
The idea for the conversion orginated during a retreat last
summer when some STOW leaders decided to propose a
referendum to convert to a residence college. During the retreat
they considered the options of converting to a residence college
or a confederation or remaining independent organizations.
Residence Hall Association President Peggy Leight said about
680 people live in the seven STOW dorms. She said she thought
there was a large voter turnout because of the publicity the
STOW issue has received.
STOW residents had complained earlier that they were being
told only of the positive aspects of a residence college. Some
Kenan residents also had tried unsuccessfully to remove Kenan
from the referendum.
Leight said some people may try to contest the election
procedures through the Elections Board. She said, however,
"Now, as far as it stands, the referendum has been passed and
STOW is a formal area."
Debra King, president of Alderman, said, "1 was very pleased
with the elections; I hope that now that we are an area they (the
people who opposed the residence college) will understand, and
we can all work together.
"I'm sure there will be problems because there are always some
that you have to work with, but I'm sure they can be overcome,"
she said.
Mary Jane Dickson, a resident of Kenan who had opposed the
vote on the constitution, said, "I was sorry to see it pass, and I'm
sorry that it passed by only 31 votes. I'd like to see a recount."
She said she thought the people at the counting in the Carolina
Union should have been told to stand away from the counting.
"I'm sorrv to see that those who were against it are now going
to be in a residence college. I quess the people got what they
wanted, but I question the way it was done," she said.
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Old Well residents vote Monday
...approved referendum 238-207
Frasier Ives, an Old East resident who also opposed the vote
on the constitution, said that although he was disappointed in the
way the voting turned out he thinks those who opposed STOW
got one of their goals accomplished. "At least the efforts of the
oppose rs forced the officers to get out and talk to the residents for
a change," hs said.
He said he also hoped the votes would be recounted. He was
disappointed that the results could not be released from each of
the individual polling places, he said.
Now that STOW is a residence college dorm leaders w ill plan
for area elections of major officers. They will not start budgeting
for its social fees until next year, w hen $ 1 .75 out of each resident's
social fees is put into an area fund.
A STOW new sletter will also be developed. Next year's STOW
residents w ill be responsible for any other programming changes.
By DALE JENKINS
Staff Writer
University Police Lt. Charles Mauer
released Monday the names of George
Spencer Brown and Richard Cooper III
as the students arrested in connection
with a Thursday bomb threat in
Hamilton Hall.
Brown and Cooper, both sophomores,
are roommates in Hinton James
Dormitory. They each were released on
$300 bonds the day of their arrest, Mauer
said.
Their cases will be heard Tuesday in the
Orange County District Court.
They will appear in the UNC Honor
Court after their trial in district court.
Mauer said Brown and Cooper had no
BM elects
1980 officers
By KERRY DEROC1H
Staff Writer
Freshman Mark Canady was elected Black Student
Movement chairperson by BSM members Monday. He is the
youngest chairperson in the organization's history.
Other newly elected officers are: sophomore Jesse Curcton,
vice chairperson; freshman Quentin Eaton, secretary; junior
Rochclle Tucker, treasurer; freshman Larry Ellis, minister of
information; and sophomore Pauline McNeill, onompui
coordinator.
The new dorm representatives arc: freshmen Allen Russell and
Smith Turner for Morrison, freshmen Linda Brinson and
Jennifer Dykes for Hinton James, freshman Sheila Miller for
North Campus and freshman Thalia Bowen for Ehringhaus.
Canady, a business major and Morehead scholar from
Lansing, Michigan, said he felt the BSM had played an active
role in the University this year. He pointed out that in the Sonja
Stone case the BSM actively opposed the University's decision in
denying Stone's tenure. "Politically the Sonja Stone ca$e wa a
big success, he said. "However, there were numerous cultural
events as well."
earlier arrests on their records in the city
of Chapel Hill.
Although this is the 26th bomb threat
made at U NC this year, he said this case is
the first in which suspects have been
arrested.
An informant gave the University
Police the suspects' names. "That is the
only way we can catch them," Mauer
said.
If Brown and Cooper are found guilty,
bomb threats may decrease, Mauer said.
Making a bomb threat is a
misdemeanor in North Carolina.
Punishment for the offense is left to
presiding judge's discretion.
The bomb threat interrupted a
Zoology 1 1 exam in Hamilton Hall which
was being administered by a teaching
assistant. Students had to evacuate the
building for 20 minutes until an alternate
site was found. I hey then completed their
exams.
Although Cooper is in the class, Brow n
Is not, Joann White, the course's
professor, said.
White, who found out about the
incident after she returned from Costa
Rica Friday, said she had not decided yet
what to do about the test. "I really put a
lot of thought into the test, with the
students in mind," she said. "I don't want
to make up another one, because it will be
unfair to the students who finished the
test. Either way, it will be unfair to
someone."
Neither Cooper nor Brown could be
reached for comment on trie incident.
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BSM officers Jesse Cureton end Mark Csnsdy
...chairperson is youngest in history of group
Canady said he believed the major problem with the group
this year were in it organization. "Some thing could have been
improved. The group was not at consolidated a it could have
been," he said. "However, much of the cntkimv the group
received wa due to ignorance. Not enough pcopk understand
what the group is for and its purpose."
One of Canady major goal a BSM chairperson ts the
See BSM on pago 2