Chapel Hill's Morning Newspaper
Chcpel Hill, North CsroEna, Wednesday, October 23, 1S74
Vd. C3, t:o. 43
Founded February 23, 1C33
fcy Cruc9 Ksndsrscn
Inflation, scourge of the 10-cent
hamburger and the nickel cup of coffee, has
struck again, this time biting into private
colleges and universities in North Carolina.
In recent years, educational costs
teacher salaries, textbooks, operating
costs have risen even faster than the
spiraling inflation rate. The result is higher
tuition at the already expensive private
institutions, thus lowering enrollments at
most of these schools.
Nationally, a total of 71 private colleges
have closed or merged since 1970, according
to a survey by the National Council of
Independent Colleges and Universities.
In North Carolina two private colleges,
Mitchell College and Southwood,
disappeared from the private ranks in 1973.,
by Wesley G. Plppert
United Press International
WASHINGTON John W. Dean III
admitted Tuesday that he knew about the
1971 Ellsberg break-in eight months after it
happened and destroyed one of the burglars'
notebooks after the original Watergate trial
in January 1973.
"You were covering up the California
burglary?" asked John J. Wilson, attorney
for H.R. Haldeman, former White House
Gent el may ptiiw M
by Rick Reed
Central Telephone and Utilities Corp.
(Centel), one of four bidders for the
University-owned telephone system, will
withdraw its bid unless a final decision is
made soon on the sale of that utility. r
Centel also said it is. not considering anti
trust action against Southern Bell at this
Robert Reuss, president of the Chicago
based firm, said last week that Centel would
consider its bid terminated "if a contract of
sale has not been approved and executed
within a reasonable time" :
Reuss made the statement in a letter
received Thursday by John Temple, vice
chancellor for business and finance.
"It is doubtful," Reuss said,"thatany such
sale can be consummated in the face of the
federal anti-trust laws and a lengthy
controversy as to the legality of the proposed
transaction with Southern Bell seems likely."
Reuss was responding to the,
recommendation of the Utilities Study
Commission (Church Commission) that the
Ctst Csns!s czxzl r.'.ichael Dudd
An estimated two-thirds of the 29 senior'
private schools in the state have experienced
The loss of revenue due to lowered
enrollments, coming amid rising costs for
practically everything, has presented
problems for a majority of the private
schools. Schools have been cutting costs by
dismissing faculty members and lowering
While more people are attending college
than ever before, fewer of them arc going to
private schools. This fall, the schools in the
Consolidated University gained 5,400,
students in enrollment From 1970 to 1974,
undergraduate enrollment at the UNC
campuses increased by 10,067. In the same
period, enrollment at the private senior '
schools increased by only 1,974.
In a recent DTH survey of private North
Carolina colleges, most of the schools
chief of staff and now a defendant in the
Watergate cover-up trial.
"Yes sir, I was," Dean acknowledged.
. "And you did this consciously?" Wilson
asked. -' '
"That was the easiest solution for me at the
moment I just put it in a shredder and hoped
the problem would go away," Dean said.
The cross-examination of Dean, former
counsel to former President Richard M.
final choice made
telephone system be sold to Southern Bell,
and the water and electric systems be sold to
Duke Power Co.
.The recommendation made Sept 27
was tentatively approved on Oct. 1 1 by the
UNC Board of Trustees. The trustees also,
suggested that the water and sewer systems
could be combined in a local water and sewer
authority of Chapel Hill, Carrboro and
possibly Orange County,
Of four bidders for the telephone system,
Centel's bid of $23.8 million was the highest.
Consumers Utility Corp. bid $22.3 million;
Southern Bell, $22.1 million; and Carolina
Telephone and Telegraph, $20.9 million.
- The Church Commission recommended
Southern Bell as successful bidder because of
its rate structure. -
Church Commission member Tom Eller
. Jr. said in a telephone interview Tuesday
that he is not surprised at Centel's position.
"Their letter is not anything new," Eller
said, "because they made it apparent that
they were going to resist Bell's having the
; telephone property."
After the Church Commission made its
September recommendation, Centel and
Stiff photo fey 63 Wfn
says Rsialgh needs new Isclstetcrs
into private school enrollment
reported decreases in enrollment.
Raleigh's Meredith College reported 1,243
students, down from 1,274 in 1974.
G uilford College had 998 this year, down
from 1,022 three years ago.
Shaw University of Raleigh has 1,194
students, a decrease from last year's 1,227.
Campbell . College of Buies Creek had
, 1,820 students this fall, a decrease from last
year (2,066) and 1971-72(2,228).
The larger schools Duke, Wake Forest
and Davidson reported that they had all
the students they wanted. None said they
were in financial trouble.
"We have absolutely no money problems
here, no problem getting students," an
official in-the Wake Forest registrar's office
reported. "All our dormitories are filled."
M ost private schools listed tuition, auxiliary
enterprises (Le., income from housing and
food services), endowment income and
Nixon, began after he had been under direct
questioning for five days as the prosecution's
first and star witness.
Just before chief trial prosecutor James F.
Neal finished his direct questioning, he
played the sixth presidential tape to be
introduced into evidence. In that tape of an
April 16, 1973 conversation, Nixon told
Dean that Haldeman and John D.
Ehrlichman, his top two aides, were "in on
the obstruction." , .
Members of the White House "plumbers" .
CUC said they would consider antj-trust
action against Southern Bell. It was
speculated that if such a suit was filed, final
sale could be delayed for as much' as 18
Richard. Middleton, corporate
information officer of Centel, said Friday
that Centel is not considering a suit at this
Middleton cited rising costs as the main
factor, in Centel's position. He said that
interest rates were 9xi per cent when the bid '
was made, and have risen to 11 XA per cent
Eller, a Charlotte attorney, said that any
legal action taken by Centel to block the sale
to Southern Bell would have to be presented
before the Federal Communciations,
Eller added that such action "will not have
the delaying effects people think it will
- Eller also said that he expects the other
unsuccessful bidders to consider
withdrawing their bids. If he was in their
position, Eller said, he would not want to
keep his deposit and bid money tied up while
a final decision was being considered.
by Greg Turosak
At first impression, one might mistake
state Senate candidate Michael Budd for
either a repairman or a football fullback
rather than a politician.
But there is much truth to both images.
Budd, 32, a resident of Siler City, currently
sells and recaps tires. His burly physique,
nowadays topped off with a beer belly, hints
at his former athletic career, when he played
minor league ball as a second baseman for
farm teams of the Los Angelespodgers and
the Boston Red Sox. . ;
During ah interview last week with the
Daily Tar Heel in his pickup truck over,
various parts of Orange and Chatham
Counties, Budd stressed the fact that he is an
honest man, new al politics and only wants
to do what is right.
"Many people assume that just because
I'm, a Republican I must somehow be
involved in the whole Watergate mess," he
said, "but how could I be? I've never run for
anything in my life, not even class president."
Budd said that as evidenced by his athletic
career, he is competitive by nature. He likes
to be challenged. Thus, he said, when he
heard Gordon Straughan tell the young
people of the nation to stay out of politics
during the impeachment hearings, he felt
even more strongly about his venture into
politics. . ..
"I'm " not running away from the
Watergate issue, said Budd,"rm running at
grants as the leading sources of revenue.
Many of the larger schools reported sizable
income from invested endowment funds.
According to the survey and published
statistics, it is the schools without huge
endowments and with enrollments of less
than 2,000 that are beset with most of the
Public schools are taking up the slack in
private school enrollment. In 1951, 60 per
cent of North Carolina's college students
attended public schools, 40 per cent attended
private schools. In 1961, the public-to-private
enrollment ratio was 67 percent to 33
per cent. In 1 97 1 , the ratio rose to 8 1 per cent
to 19 per cent
The reasons for the lopsided ratio? One is
tuition rates. Tuition has risen at the 1 6 UNC
schools an average of 25.2 percent in the last
four years, now averaging $459 per academic
year. For the same period at private colleges,
special investigative unit committed both the
1971 break-in at the office of Pentagon
Papers defendant Daniel Ellsberg's
psychiatrist in Beverly Hills, Calif, and the
1972 break-in at the Democratic National
Committee in the Watergate complex.
Ehrlichman was found guilty of
conspiring to violate the psychiatrist's civil
liberties. Nixon said in written statements at
the trial in July that he learned of the break
in March 17, 1973.
A notebook belonging to E. Howard Hunt
Jr., a mastermind of both break-ins, was
removed from his White H ouse safe after the
first break -in. As Wilson bore in, Dean
testified he found the notebook in January
1973, the same month that Hunt and others
were convicted in the original Watergate
trial. :i . ..... ..,--.i.'my.
Under cross-examination, Wilson
questioned Dean at length about hb
bargaining with the original Watergate
prosecutors for immunity from prosecution.
Dean acknowledged that between April
8 and the end of May 1973, when he was
informed he would not receive immunity, he
had talked with the prosecutors five times.-
"Were you fooled by them?" Wilson
"The arrangement I worked out in off-the-record
discussions between the prosecutor
and myself was that what I told him would,
not be used against me and later they would
decide what to do with me," Dean said.r
"In these off-the-record discussions, did
you admit guilt?" Wilson asked.
"Principally, obstruction of justice," Dean
said, adding that he also acknowledged that
he had urged deputy campaign director J eb
Stuart Magruder to commit perjury.
Dean also testified that the principal
document he relied upon in preparing
testimony of more than 200 pages for the
Senate Watergate committee was a file of
newspaper clippings about Watergate
prepared by the Committee to Re-elect the
beat 'well-oiled machine'
it head-on." He said the Watergate issue
needs to, be tackled..
. At the same time Budd feels himself and
other Republican candidates should not be
assumed to be connected with the Watergate
scandals, he had harsh words for what he
feels is political hanky-panky on the part of
the North Carolina Democratic Party.
Budd said that the Democratic Party is a
well-oiled machine" whose main purpose is
to perpetuate itself in office and to derive
benefits for its members at the expense of
"For years," Budd said, "the Democrats
pretended to be the beacon light of the blacks
and the poor people in this state, when they
really just used these people to keep their
Turning his pickup truck off the main
road, Budd drove down a well-paved side
road. After a deserted half-mile, the road
ended, and one house stood there.
"See that house there?" said Budd. "That
belongs to a Democratic precinct worker.
The Democratic administration in Raleigh
paved a half-mile long private drive for him
out of state money," he said.
"Now that's an example of what I've been
telling you about" said Budd,"that for years
the Democratic Party has been doing things
to the people of North Carolina instead of
for the people of North Carolina."
He said that another reason to vote for
him besides his honesty and newness to
politics would be to end the Democratic i
; majority in both houses of the N.C.
the increase was 29.5 per cent This nearly 30
per cent increase, added to tuition averaging
$1,626, has put private schools out of reach
of most North Carolina families.
One college hurt by the situation is
Campbell College. This year enrollment fell
by 246 students. Provost A.R. Burkott said
the decline was anticipated. In the last few
years, tuition has gone up at Campbell, there
was a faculty cutback last spring, and less is
being spent on such things as building
maintenance this year.
Burkott said Campbell is more or less
typical of small private schools. Part of the
trouble, he said, comes from the lack of state
aid to private schools. All North Carolina
students at public schools are subsidized
$1,500 per year. Students at private schools
are allowed only $200, based on need. A
request for more state aid is now being
William Stevens addresses the UNO
te v ms
by George Bacso
. ' Staff Writer
William Stevens,. Republican candidate
for U.S. Senator, attacked Democratic
opponent Robert Morgan for refusing to
participate in a joint debate and questioned
Morgan's record as state attorney general
here Tuesday. . ,
Stevens, speaking at the "Carolina Inn
Legislature, which further allows the
machine to perpetuate itself.
Budd expressed concern for the energy
crisis, and noted that he saved 20 gallons of
oil, five gallons per tire, by retreading the
tires on his pickup instead of buying new
In his own small way, Budd said, by being
in the retreading business, he felt he was
helping to ease the energy crisis. If other
Americans could also find ways to save oil,
. the overall effect would be great he said.
On other issues, Budd said,MOf course, I'd
do away with the sales -tax on food." But on
the issues of the Equal Rights Amendment
and capital punishment he was vague, say ing
that he would have to vote the way he
thought the majority of his constituents felt
On the Interstate 40 issue, Budd angrily
criticized the Democratic Party for making
political hay out of the issue,. and said the.
route should be put in somewhere near
Overall during the interview, Budd's
ideology and philosophy came across, much -more
strongly than the other three
candidates- However, Budd did not venture '
into a deep discussion of the issues.
His theme seemed to be held in this
statement "I'm new at this, IVe got a lotto
' learn, but I think the people want someone
who will do what he thinks is right"
This is the last in a series of interviews with
the four state Senate candidates. They will
appear together on Oct. 30 at 8 p.m. in the
'Great Hall '
"I think I'm speaking for all the North
Carolina private colleges," he said, "with a
few exceptions. The small colleges have to
compete for teachers who want higher pay,
with public schools and larger schools." He
added that new competition came from
technical insti t utes and community colleges.
Practically speaking, he said, the private
schools are no longer competitive with state
"What it amounts to is the big are getting
bigger and the small are getting smaller," he
Burkott .remained optimistic, however,
saying that most of the private schools are
not in dire financial straits, despite the
"I think by next fall well be back on the
right foot," he said.
ss'Ws S's,, "Ss S,jr. s-S "S"
Staff photo by Martha Stavorn
Faculty Club at the Carolina Inn
o unesiti om
before the UNC Faculty Club, reiterated his
belief that inflation is the, key issue in the
race. . .
"I understand my opponent was invited
here to speak jointly," Stevens said,but that
he declined and refused, which has been his
habit throughout this campaign." '
Stevens recently asked Morgan why he
has refused to take part in a public debate.
Stevens said Morgan replied, "They might
plant a question on me like they did on
"I wonder," Stevens said, "what question
he is so worried about answering?"
"Perhaps he is afraid of discussing his role
in the 1960 gubernatorial campaign of I.
Beverly Lake. . . Mr. Lake said Morgan
urged him to run, raised money for his
campaign and was involved in policy
Lake's campaign was noted for its
Stevens also theorized that Morgan might
be wary of questions regarding his record as
Morgan's handling of milk price-fixing
allegations was also the target of Stevens'
Attorney General James H . Carson J r. has
announced charges against nine milk
processors for price-fixing. Why was this not
done during Morgan's term, when they have
known about it for more than three years,
Price fixing in the milk industry resulted in
a loss of over one million dollars per year to
the taxpayer, he said.
Stevens also called for Congressional
response to President Ford's challenge to set
a $300 billion spending limitation.
"I have observed some pretty fuzzy
thinking in the realm of economics,
especially inflation. . . and a lot of it comes
right from the halls of Congress," Stevens
Second in the minds of people, Stevens
said, is the growth in the rate of crime. As a
result, Stevens wants a complete
reassessment of the distribution of federal
Stevens said he advocates a national
health insurance plan, but holds some
reservations as to the plan's institution.
"It is almost inevitable that we will have a
national health insurance plan, but I want to
make sure we don't kill the patient in trying
to cure the ill of the high cost of medical
care" he said.