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Volume 93, Issue 84
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Gulf crisis causes rise
in U.S. inflation rate
spending power sank again in Septem
ber as the Persian Gulf crisis pushed
prices up a sharp 0.8 percent for the
second straight month, the government
said Thursday. Still, inflation not tied to
oil prices remained relatively mild.
If the Consumer Price Index contin
ued increasing at the September pace
for a year, it would produce an annual
inflation rate of 9.5 percent.
Most economists believe price in
creases excluding the outbreak of a
shooting war will return to a more
normal level by the end of the year. The
oil shock nevertheless has added a new
burden for an economy that was already
on the brink of recession.
"You take out energy and the num
bers aren't that bad. But on the other
hand, people have to buy the energy and
it gives you an annual inflation rate
roughly double the rate of wage growth,"
said economist Donald Ratajczak of
Georgia State University.
U.N. council ponders
steps against Iraq
NEW YORK Members of the
U.N. Security Council on Thursday were
weighing a war-reparations measure
against Iraq. The Baghdad government,
battered by global sanctions, ordered
rationing of medicines and offered to
sell oil cheap.
High oil prices, fueled by the 12-week-old
Persian Gulf crisis, pushed up
the cost of living for Americans and
helped widen the U.S. trade deficit, the
government said Wednesday in two
In a renewed diplomatic bid to break
the gulf impasse, Secretary of State
James Baker met Thursday with an
envoy from Soviet President Mikhail .
Gorbachev. The envoy, Evgeny
Primakov, is to meet Friday with
The proposal calls on Iraq to with
draw from Kuwait possibly in ex
change for elections in the emirate and
cash compensation to Iraq to settle an
oil claims dispute.
costly for Gorbachev
MOSCOW An adviser to Mikhail
Gorbachev said on Thursday that critics
like Boris Yeltsin were needlessly
eroding international confidence in the
Soviet Union by attacking the
president's economic rescue plan.
"Every such speech robs us of several
billion dollars' worth of (foreign) loans,"
Abel Aganbegyan, an architect of
Gorbachev's compromise reform plan,
told committees of the Supreme Soviet
The economist's charges heated up
the political atmosphere as Gorbachev
prepared to present his four-stage eco
nomic plan to the full 542-member Su
preme Soviet on Friday.
Aganbegyan charged that "political
instability" caused by Yeltsin would
force Western banks and countries to
think twice about offering loans needed
to help the Soviet Union switch from a
centrally planned to a market economy.
Yeltsin, president of the Russian
Federation, the largest of the 15 Soviet
republics, said in comments published
Wednesday that the president's plan
was a "catastrophe" and "doomed to
fail" within months.
From Associated Press reports
Lab Theatre to stage lonesco's
History in the (re)making
Old East and Old West residence halls
prepare for renovations 3
Michael Jordan's Bulls to meet Nets
in Smith Center Saturday.... 4
Local 1 3
Opinion .........................J............... 8
1990 DTH Publishing Corp. All rights reserved.
Friday, October 19, 1S90
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Members of Kappa Alpha Psi sorority perform in the
Homecoming Step Show Thursday night in Carmichael
Hate crime increase
sparks student rally
By MICHELLE RABIL
Students from various organizations
plan to hold a Rally Against Hate
Monday in the Pit from noon to 1 p.m.
in response to the wave of hate crimes
Students for the Advancement of
Race Relations is sponsoring the rally
because of a recent series of hate crimes,
including the defacement of a Harvey
Gantt campaign poster with racial slurs
in Mangum Residence Hall and a
Carolina Gay and Lesbian Association
announcement on the Cube in the Pit
with anti-homosexual slogans, said
Birshari Greene, SARR co-chair
Proposed road would reroute traffic,
close off Manning Dr. access to 15-501
By JULIE ANN MALVEAUX
Plans for a new road that would cut
through Odum Village, UNC's married
student housing, were the focus of dis
cussions between Vice Chancellor of
Business and Finance Ben Tuchi and
Chapel Hill Town Council members
As part of the four-year-old Land
Use Plan, University planners want to
realign Manning Drive, which goes in
front of UNC Hospitals, in order to
block it before it reaches the U.S. 15
501 bypass. Traffic from the bypass
would instead be routed to Columbia
Street and then to the new road.
The UNC Land-Use Plan was de
veloped because the University needed
more land to accommodate increased
population and construction, Tuchi said.
Development of future land will in-
By SHANNON 0'GRADY
Budget cuts have disrupted the tran
sition from the booming '80s to what
some economists have called the lean
'90s, but history shows that UNC has
faced and survived similar situations
After the roaring 1920s, the depres
sion years of the '30s brought sobering
budget problems to the University. Al
though the circumstances surrounding
the University's budget problems in the
'30s differed from those of today, the
effects on the institution and the com
munity were similar.
In a speech on Jan. 29, 1931, Uni
versity President Frank Porter Graham
spoke to a joint session of the N.C.
House and Senate about the University's
$875,000 budget request from the state
legislature for the 1930-31 fiscal year.
State legislators initially cut the amount
by 20 percent to $700,000 and finally
reduced it by 34 percent to $573,600.
Serving the students and the University community since 1893
At least five other organizations
will participate in the rally she said.
"We want to show a coalition of
student groups getting together who
don't want to stand for this any longer,"
Many student leaders will speak at
the rally to show the University
community that students are aware of
the problems and are working to solve
them, Greene said.
The rally will be beneficial to the
University because, despite UNC's
racial harassment policy, not much
See FORUM, page 7
elude studies of traffic patterns, he said.
'The University's intent is to get
traffic away from the hospital and pro
vide access to future (building) devel
opments between Manning Drive and
Mason Farm Road," said David Bonk,
Chapel Hill senior transportation plan
ner. Tuchi said several new buildings were
planned in the area of the new road,
including an addition to the hospital and
an ambulatory care building.
Town council member Julie
Andresen said Chapel Hill needed to
improve its road system. "The town
needs to revaluate traffic circulation, so
the hiring of a traffic signal expert within
the next two years has been planned in
the budget," Andresen said.
Tuchi said he did not think the con
struction would interfere with the ev-
eryday lives of the students living in
previous budget shortfalls
The faculty took a 33.3 percent cut in
salary, said UNC instructors from the
'30s who still reside in Chapel Hill.
"The teachers got mighty poor sala
ries," said Lawrence London, a 1931
UNC graduate and former curator of the
N.C. Rare Book Collection, in an in
"We had a great difficulty keeping
good faculty," he said. "By 1930, we
lost three really big men in the English
department. One went to Harvard, one
went to Iowa and one went to Colum
bia." Gladys Coates, widow of Albert
Coates who founded the Institute of
Government, said 1930 budget reduc
tions greatly affected the Chapel Hill
community. "Salaries went down very
much," she said. "We literally lived
from hand to mouth. It was a very, very
bad time for a lot of people around
The University found it difficult to
improve salaries after the budget cuts in
My teenage angst has a
Auditorium. The event was sponsored by the Black
Greek Council and Carolina Athletic Association.
IMC, other state muversities
may be affected by shortfalls
By STEPHANIE JOHNSTON
Assistant University Editor
UNC-system schools probably will
share in future state budget cuts and
adjustmentsin revenue, system officials
N.C. legislators will face a projected
budget shortfall of at least $658 million
in the 1991-92 fiscal year, an article in
Thursday's issue of The Charlotte Ob
The shortfall could grow to $900
million if oil prices continued rising and
the nation slid into a deep recession, the
Samuel Poole, Board of Governors
chairman, said he thought budget
Odum Village and surrounding areas.
He added that students could park nearby
and ride buses home if construction got
in the way of traffic. "Discussions are
underway for another parking deck to
be built before road construction would
begin," he said.
The Land-Use Plan is not part of the
thoroughfare plan the state requires of
all localities expecting funding assis
tance in building highways and meeting
other traffic needs. But town staff
members recommended postponing the
Manning Drive realignment decision
until it could be included as an amend
ment to the thoroughfare plan.
The Chapel Hill Town Council will
vote on the proposal Oct. 29. If the
council approves the realignment as an
amendment to the thoroughfare plan,
construction is expected to begin within
three to four years.
1 930, said Caryle Sitterson, a 1 93 1 UNC
graduate. Sitterson also served as dean
of the College of Arts and Sciences
from 1955-1965 and chancellor from
1 966-1 972. "It was not until after World
War IJ, 10 years later, that salaries re
turned to normal."
Graham did his best to maintain the
University's high academic standards
and to keep the faculty morale high
during the 1930 budget cuts, Sitterson
said. "I do not believe it would have
been possible for the University to find
anyone to deal with the crisis like Gra
ham did," he said.
London also said Graham acted as an
outstanding leader for the University
during the crisis. "I think he handled the
situation as well as possible and better
than most," he said.
"He was able to work well as a native
North Carolinian with the legislature,"
London said. "Some people practically
See HISTORY, page 7
body count. Heathers
By MARCIE BAILEY
Writing with chalk on University
surfaces is against the Policy on Use of
University Facilities, but many organi
zations are unaware such a pol icy exists,
student leaders said Monday.
The policy was questioned following
an incident of chalked message writing
and erasing in the Pit Monday before an
appearance by Harvey Gantt, candidate
for U.S. Senate. The question of who
can hang signs in the Pit also was con
sidered. Susan Ehringhaus, assistant to the
chancellor, said the policy stated that
postings could not be made on any
surface and made no area an exception
to the rule.
Some students also said they were
confused about whether erasing chalked
signs violated the First Amendment right
to freedom of expression. -
College Republicans members who
wrote pro-Jesse Helms messages with
chalk in the Pit Monday said they felt
their right to free speech was violated
by Doug Ferguson and Jennifer Davis
when the two washed the signs off the
shortfalls would occur. But the univer
sities would have to wait and see if
additional cuts were made in their
budgets, he said.
"I certainly hope they (legislators)
don't continue to cut funds," he said.
Felix Joyner, General Administration
vice president of finance, said system
schools would be affected by any actions
the General Assembly took. "Universi
ties would share in the result of adjusted
revenues, finding reserves," he said.
The BOG has asked the General
Assembly to restore $48 million it has
cut this year in funds to the system
The General Assembly cut 3 percent
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Rebecca Potter and Aimee Watson of Phi Mu collect changefor Project Hope
and UNC Hospitals' pediatric ward in a bathtub on Franklin Street .
Charlton Allen, College Republicans
chairman, said the group had not de
cided what action they would take about
the incident, but believed the Under
graduate Student Court and U.S. Con
stitution would support their case against
the two students.
"I believe you have the right to write
what you believe and to silence that is
infringing on rights to free speech,"
Ehringhaus said the Pit, which is
considered a forum for student expres
sion, is included in the policy's section
about marking on University surfaces.
"People don't have the First
Amendment right to mark on Univer
sity property," she said.
Enforcing the policy is virtually im
possible, however, considering the
number of students and the lack of staff
in the facilities department, she said.
Bill Hildebolt, student body presi
dent, said he was serv ing on a comm ittee
that revised the Facilities Use policy
every summer. The new policy, which
has not been approved yet by Chancel
lor Paul Hardin, would allow chalked
See CHALK, page 7
of UNC's base budget in August because
of a $336 million shortfall in state rev
enue, and the Office of State Manage
ment and Budget reduced the
University's first quarter allotment by
an additional 1.7 percent.
The University is expecting an addi
tional 3.2 percent cut for the remainder
of the fiscal year.
Poole said he did not know if the
General Assembly would support fund
restoration. "I certainly hope they
would," he said.
Joyner said system officials were
See BOG, page 7