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Partly cloudy today with a 30
percent chance of late after
noon thunderstorms. High
in the upper-80s.
New night spot
Pegasus a new bar fea
turing live rock 'n roil has
opened its doors on Franklin
Street. See story on page 4.
Serving the students and the University community since 1893
Copyright The Daily Tar Heel 1832 '
Volume 90, Issue 43
Tuesday, August 24, 1982
Chapel Hill, North Carolina
Business Advertising 962-1163
- - n
5 ...!. .
Hard at work
Henry Brodie of Carolina Road Builders keeps a close eye on his
crane as he helps with the construction of the bridge at Hills
borough Street and Bolinwood Drive.
Economic effect unknown
Tkree Nodo ban!
annus MDweir BFame
um aile)lli)Jl tow
By BOB XIMPLETON
"Are you going to be drinking
anything stronger than Coca-Cola?" the
police officer asked a browser at a public
information booth in front of the
Franklin Street Post Office last week.
UNC sophomore Carolyn Griffin
responded in the affirmative.
Chapel Hill police officer Rick Butler
proceeded to tell Griffin of the town's str
ingent alcohol consumption laws and of
the police's recent crackdown on illegal
'.'We've been cracking down all sum
mer, but the new students don't know
that," the officer explained.
In July, 17 local restaurant and bar
employees were charged with serving mix
ed drinks to an underage woman a
19-year-old police trainee who visited 19
drinking establishments. Only two did
not serve her a mixed drink.
North Carolina's minimum drinking
age is 21 for liquor (including mixed
drinks), 18 for beer and unfortified wine.
All 17 persons charged in the under
cover operation entered a deferred pro
secution agreement under which they
must solicit contributions for the town's
The undercover operation was one of
the latest efforts by Chapel Hill police to
crack down on illegal drinking.
In August 198 1 , town Mayor Joseph L.
Nassif met with local alcohol vendors in
an effort to curb underage drinking. He
said that the police would crack down
and urged Ihem to step up identification
"In a college town, particularly in
Chapel Hill, a relaxed attitude toward
drinking tends to prevail. But the costs of
drinking by minors, and overconsump
tion in general, are too high for us to ig
nore," Nassif wrote in a letter to local
With the blessings of the mayor and
the town council, Chapel Hill police last
fall began increased enforcement of
alcohol laws. Included was an operation
in which plainclothes police officers
patrolled the streets to spot violators of
the town's public consumption or
dinance, which makes it illegal to con
sume alcohol on city streets, sidewalks,
parkgrounds and other public places.
More than 230 persons were charged
with alcohol related offenses between
August 1981 and January 1982. Most of
those arrested for public consumption
were students, who attended an alcohol
education class in lieu of prosecution.
The town's campaign against alcohol
violations continued this summer with the
undercover operation, as well as other
Between July 9 and August 15, outside
of the undercover operation, there were
84 alcohol-related charges made by
Chapel Hill police, including 41 for
public consumption and two charges of
Uttering with beer cans.
Many of the 21 charges of for underage
possession of beer during the same time
period were the result of uniformed
police officers spot checking bars , and
asking patrons for identification.
With students back, spot checks and
other alcohol law enforcement will con
tinue, said Maj. Arnold Gold of the
Chapel Hill Police Department. But he
added that the department would rather
people be aware of drinking laws than
have to enforce them one reason a
police officer was placed atjhe informa
tion booth at the post office on Franklin
Street, sponsored by the town's Cnamber
"We would rather prevent crime than
have to enforce the laws," Gold said. "If
we don't get compliance we're going to
See ABC on page 3
By HOPE BUFFINGTON
The prime rate went down again Monday, as First
Union National Bank, Wachovia Bank and Trust Co. and
North Carolina National Bank; North Carolina's three
largest banks, reduced their prime lending rates from 14
percent to 13.5 percent. Monday's reduction in the prime
rate, the rate at which banks ban money to preferred
customers, was preceded by two drops last week.
The lowering of interest rates followed similar an
nouncements by Citibank and Chemical Bank of New
York, making the present prime rate the lowest since mid
How these sudden drops in the prime lending rate will
affect the economy is not yet evident, banking officials
said last week. However, last Tuesday and Wednesday'
were record-breaking days on Wall Street as investors
were optimistic about the falling rates.
Stephen L. Meehan, Assistant Secretary of the North
Carolina Department of Commerce, said high interest
rates have definitely affected industrial investments in the
state's history, he said. .. .
Meehan said many of the nation's corporations and
businesses, including many large, multi-million dollar cor
porations, are operating at 70 percent capacity, making
further industrial investments unprofitable.
Meehan said immediate factors that could produce a
possible upswing in the nation's lagging economy "are in
terest rates being first, then control of government
spending." Meehan added that "People are now looking
more at interest rates than at balancing the budget."
The question is how long will interest rates continue to
decline, economists said.
Al Smith, Chief Economist for North Carolina Na
tional Bank, the largest bank in the Southeast, predicted
prime lending rates to continue to fall through September,
possibly leveling off in October. However, consumers
might not feel reductions in the prime interest rate until
the end of the year. ;
An official at the Federal Reserve recently agreed,
noting that short-rates, the interest banks pay to loan
money from the government, would probably remain at 9
percent; however, the short-rate dropped to 8.875 percent
Monday, continuing a drop from 14.81 percent the last
week in June.
He also said that the sudden reductions were necessary .
for any significant recovery in the nation's economy.
Reductions in consumer Yates would be the decision of the
individual banks and not the reserve. '
However, Jim Singleton, Media Relations Director of
First Union National Bank, said he believed that three
main factors are involved in the reduction of prime len
ding rates: Federal Reserve short-rates, Money Market
Certificate rates and prices paid on high volume, short
term deposits, which are called -"free money." "Free
money" refers to surplus money between major in
vestments. The Federal Reserve rate and the Money
. Market Certificate rates which dropped to 10.5 percent
Monday are controlled by the Federal Reserve. Board,
whereas the interest paid on high volume, short-term
deposits are controlled locally by the banks.
There are many other minor factors, including building
rents and employee salaries, that reduce the 5 percent
spread between the Federal Reserve rate and the prime
lending rate, he said. At times during the past year the ac
tual margin between the two rates has been approximately
1 percent, sometimes less than 1 percent, and at one time,
for a few hours, a negative percent, Singleton said.
The most likely route for further reduction in the prime
is a drop in the short-rate by the Federal Reserve.
Singleton said he doubted such a reduction would occur
because the recent change in the rates has created a flow
of money into the market which will stimulate the
economy. But the Reserve's drop in the short-rate Mon
day was seen as a further step towards strengthening the
Dr. Roger N. Waud, professor of economics at UNC,
said interest rates may fall by the end of the year as low as
10 percent, a figure .66 percent higher than the interest
; rates of 1979, considered a boom year by economists.
Waud also noted that falling interest rates would pro
vide a bigger cash flow, enticing the consumer to borrow
and invest more money in the economy. However, the
consumer rate is currently between 16 and 18 percent. The
consumer may also interpret the lowering of the prime
lending rates as a sign of decreasing inflation.
He said he believed that the nation may not be at the
end of its recession; therefore, the nation's reaction to the
sudden drops in prime lending rates could cause overex
pansion in the economy, which could result in soaring in
terest rates again. ;
Transfer orientation has
greater turnout- tMs year
By JOHN RICE
"My only problem was getting sick
from all the drinking. God! I'm glad
classes are starting,' one UNC junior
transfer student said about Junior
Transfer Orientation. But there was more
to the program than'Dionysian festivities.
Some would describe Transfer Orienta
tion as an attempt to show more than 800
mice how to run successfully an intricate, .
two year maze at Carolina with a chunk of
blue cheese at the end. At every corner is a
decision about academic studies, campus
organizations, social needs, and so on.
In preparation for meeting the upcom
ing demands of college life at UNC, the
transfers were kept hustling for four days
to conferences with advisers, softball
games replete with kegs, picnics, seminars
like "What to know before meeting with
your advisor," and "Graduating on
time," and much more. The question is,
"Was Junior Transfer Orientation a suc
Neel Lattimore, Transfer Coordinator
and responsible for Transfer Orientation,
reflected in the Chi Psi house early one
morning after it was over. "When I was t
a Junior Transfer, orientation wasn't suc
cessful for me so I wanted to see if it could
be improved. I was told to expect 10 per
cent (of transfers) to show for an activity,
but each time we had over half . To me
success lies in that. Most transfers should
know what's going on, or at least who to
Low turnout in the past has made orien
tation for transfers seem unnecessary. But
this year a program described by Lat
timore as "geared more to academics"
met greater success.
Pam Foster, a transfer from Lewisburg
College, said she would have been lost and
confused without orientation counseling.
"My OC (orientation counselor) was a
See TRANSFER on page 3
By JEFF GROVE
Assistant Arts Editor
Second of two parts
Theater is something , of a booming com
modity in Chapel Hill. But the town does not
hold a monopoly on theater in the Triangle.
. The Carolina Regional Theatre, which until
last year operated out of an office in the UNC
department of speech communication, is one
example of the presence of theater head
quartered in nearby cities accessible to Chapel
Over the summer CRT relocated in Raleigh's
Memorial Auditorium. Some performances
will be held there, but CRT will maintain its
reputation as a touring company, taking high
quality, small-scale theater to locations across
CRT artistic director Martha Nell Hardy, a
UNC speech professor, mentioned with justi
fiable pride that CRT has visited two-thirds of
North Carolina's counties. Hardy was unable
to give details about this year's CRT produc
tions because contractual arrangements are in
complete. But she did say that Chapel Hill will
definitely be on CRT's itinerary. In that way,
it will be as if CRT never left.
Other groups in the Triangle do not perform
in Chapel Hill but serve the community just
the same. Durham and Raleigh both have
amateur companies which offer theatrical pro
ductions which are often well worth the drive.
The Duke Players, for example, are drama
students and professors at Duke University.
While the Players are the producing arm of
Duke's drama department, they are not really
a part of the department. Drama professor
John Clum leads the company with artistic
director Jeffrey Storer. But all major deci
sions, including selection of plays, are made
by a student executive council.
The Duke Players' season begins this week
end with a production of Brian Friel's Lovers.
A professional actor will appear in the leading
role of Bertolt Brecht's Galileo. The re
mainder of the season will feature Uncommon
Women and Others, The Comedy of Errors
, Off the Duke campus, but still in Durham,
is the Durham Theatre Guild, a community
theater affiliated with the Durham Arts Coun
cil. Founded some 35 years ago, DTG is con
trolled by a "working" board of directors
members who select the season,' direct the
plays, and act as technical crews. The actors,
who come from the Triangle area, are stu
dents, workers and homemakers by day. At
night, though, they don greasepaint and cos
tumes and create new worlds for area au
diences. DTG president Bud DeWinter said that
DTG does not offer student discounts be
cause, as with CRT and Duke Players, regular
admission is so low that such discounts would
DeWinter said that DTG will present four
shows this year: Something's Afoot, Our
Town, The Killing of Sister George and Come
Blow Your Horn.
If you are willing to drive a little more, there
are tempting theatrical offerings in Raleigh,
Raleigh's Theatre in the Park has been
around in its present form since 1972, and
before that as the Children's Theatre of
Raleigh, founded in the mid-40s.
A mystery play, still to be chosen, will start
the season in October. A Christmas Carol,
Julius Caesar, and the musical Zorba will
follow. In between these shows will be a large
number of studio presentations, which allow
talented area craftsmen a chance to exhibit
their skills. Many local writers and directors
get big breaks here.
Like Durham, Raleigh has its community
theater the Raleigh Little Theatre, founded
in 1936. Executive Artistic Director L. Newell
Tarrant directs most of RLT's plays, but guest
directors are brought in on occasion; RLT de
pends on its subscription audience, as only 25
percent of its ticket sales are single admissions.
But RLT offers student discounts for single
shows and season subscriptions.
This year RLT will produce Sherlock
Holmes, Grease, Move Over Mrs. Markham,
The Crucible and South Pacific. RLT is noted
for being one of the few community theaters
to use an orchestra when it produces a musical.
So there you have the answer. If the Play
makers Repertory Company is between pro
ductions and it's three months before another
touring Broadway show comes to town and
you're starved for theater, just check the
Weekend section of the DTH chances arc
that just a short drive away, someone is pre
senting that play you always wanted to see.