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1 A "7 fi ill S ((J LN Is l I I ( I I i Vol. 03, No. 59 Chapel Hill's Morning Newspaper Chspel Hill, North Ccrc'Ina, Wednesday, fioYembsr 13, 1974 Founded February 23, 1C33 Mops O by Helen Thomas UPI White House Reporter WASHINGTON The White House bowed to statistics Tuesday and conceded the nation is moving into a recession. w , After weeks of avoiding the word, presidential press secretary Ron Nessen said Tuesday that economic indicators he has seen for November will show that this month we are moving into a recession. The statement represented a major concession by President Ford on the eve' of a renewed attempt to push his economic program, including a five per cent income surtax, through the lame duck session of Congress starting Nov. 18. The Office of Management and Budget is scheduled to release a series of economic reports next week, including Jhe Wholesale Price Index and personal earnings figures, the Gross National Product, balance of trade and industrial production statistics and the Consumer Price Index. Numerous earlier economic indicators such as a decline in the Cond Aldermen's veto a rarity om iniums rejected by Henry Farber Staff Writer Controversial Laurel Hill Condominiums crumbled in the planning stages, Monday night when the Board of Aldermen voted 4-2 to deny the landowner's request for a land use permit. The board's veto was a rare rejection of a Planning Board recommendation, submitted last week, which gave the go ahead for the 225-unit housing project on the southern outskirts of town. . The aldermen also buned Granville Towers' plans for a driveway to Cameron Avenue and heard sworn testimony on an office condominium project on Airport Road. "If ever there was a hairline case, this was it," Kurt J enne, director of urban development, said of the Laurel Hills decision. As a professional planner, J enne provided the Planning Board, a citizens' advisory group, with neutral staff reports. However, he said in a background statement at the meeting that the project was premature for development. iLV; The conflicting decisions oTthe aldermen and the planners do not represent any fundamental difference in interests, town officials agreed. Mayor Howard Lee said of the differing judgments, "It's the first time I've seen it happen in a long time. It's so rare that it's really a surprise." Traffic problems in the area, just east of Morgan Creek, appeared to be the decisive factor in the aldermen's decision. Jenne set the stage when he said the road network around the project was the primary concern. Alderman Gerry Cohen dramatized the problem, saying a driver traveling on Farrington Road at high speed would have, only two seconds . to stop for an oncoming car at the intersection with Parker Road. The oncoming car could be sighted at most 150 feet away, a report stated. Alderman Alice Welsh made the motion to halt the project, saying the land owner, William L. Hunt, recognized the problems, but did not offer solutions. The problems, as cited in reports, included lowering surrounding property values and insufficient access to utilities and sewer lines. Cohen said he and Shirley Marshall, who cast the only other "no" votes, could not agree to all of Welsh's particular stipulations, but he said he would have rejected the project on lesser grounds to make the decision nearly unanimous. When Welsh's motion was', passed, residents of; the area, who had come to witnessTfieTmal words on the issue, breathed sighs of relief and congratulated each other. Among them were several of the hundreds of citizens who attended a public hearing on the - matter last month. The board's reaffirmation of the Planning Board's recommendation on Granville Write-in record set eoeral election m Orange County voters set what may be a new record for write-in votes in last Tuesday's general election. A total of 341 write-in votes were cast for 246 different people and animals. In the race for congress. Chapel Hill Mayor Howard Lee received 31 votes, while Chapel Hill Alderman Gerry Cohen received seven. A total of 41 persons got one vote apiece for Congress, including black activist Angela Davis, Chapel Hill Transportation Director John Pappas, and Richard Nixon. Single votes were cast in the sheriffs race lor Mickey Mouse, Captain Kangaroo, Nyle Frank and political science Professor James Prothro. Rolling Stone correspondent Hunter S. Thompson, who spoke at Duke two weeks ago, received two votes. In the U.S. Senate battle, one voter tried to write in consumer advocate Lillian Woo, but spelled her last name Wop. Duke University President Terry Sanford got six votes while Mayor Howard Lee received two. For District Attorney, football coach Bill Dooley got one vote, as did Lee, Cohen and Watergate defendant John Dean. All write in totals have been forwarded to the State Board of Elections. Towers proposed driveway left the dorm complex with access only onto Franklin Street. ' Merchants pushed for the alternate access to Cameron Avenue to alleviate traffic congestion in University Square's commercial area. However, residents of Cameron Avenue, who argued at a public hearing that additional traffic would weaken the streets residential character, won out "in the aldermen's refusal to grant a land use permit for the driveway. Granville officials did not actively support the driveway, a University Square official said, because they were suspicious of the merchants' motives. Merchants have discussed plans to install gate-attendant parking in the square. One plan would eliminate access to Franklin Street from Granville. . Lee agreed to consider forming a committee to study traffic around University Square, which he said is ' integral to downtown traffic problems in general. Lee mentioned the possibility that "someday we'll have to one-way Franklin, Cameron and maybe even East Columbia. These are realities we'll have to face up to sooner or later." 1 In a public hearing, the aldermen heard from a local architect who asked for a special land use permit, to build two office condominium buildings and a branch bank on Airport Road. , The board has rejected two requests in the last five years to build shopping centers on the property, directly across from Barclay Road. . But architect Arthur Cogswell, speaking in behalf of developers Thomas Heffner and J. P. Goforth, said the construction would be on a residential scale and would be "extensively landscaped for visual appeal. It's not for commercial-retail purposes, but office-institutional." The matter will go to the Planning Board for a recommendation on the aldermen's final decision. - The aldermen also petitioned the 1975 state General Assembly to authorize the town to spend public funds for the support of day care and child care services. "The city is in no way obligated to spend such funds," Lee said, but would at least have the option without being hampered by state statutes. o hum EH Gross National Product for three straight quarters fit the standard definition of a recession. Nessen said he had based his forecast on talks with treasury secretary William E. Simon, Alan Greenspan, chairman of the Council of Economic Advisers and presidential assistant William E. Seidman. The figures show that industrial production has been slipping with layoffs in the automobile and other industries. There is evidence that unemployment now at six per centr in continuing to increase, and the GNP is declining, he said. "Those are the ones that lead up to the feeling that we are moving into a recession. Inflation is still a' serious problem and the ultimate cause of the recession, he said. He made it plain that Ford will continue -to push for passage of his economic package in Congress which includes the five per cent surtax on middle and upper incomes. Nessen said that the President believes the surtax is necessary to raise revenues to fight the recession without adding to the inflation. Ford scheduled a breakfast meeting Wednesday with Senate Republican Leader Hugh Scott to discuss the economy and Ford's legislative priority list for the lame duck Congress. Scott has chided the administration for not calling the current economic situation a recession. . Asked why the White House waited for 'one week after the election to assess the economy as in recession for the first time, Nessen replied: - "These figures are just beginning to come lhVThey are hof even final.'." As of September ,the economic evidence indicated "we were not in a recession," Nessen said. But since that time, he added, "economic statistics have shown an erosion." Julian Bond to speak Georgia state legislator Julian Bond will speak at 4 p.m. today in Memorial Hall. The nation's first black presidential nominee in 1968 and founder of the Student Non Violent Coordinating Committee in 1960, Bond will appear as part of Student Government's Colloquium on Individual Rights and Liberties. 1 8 m ; ill j?J 1 of mtut: - Jiiim'..'. .:wiii'I UPI Ictephoto Ford, Rockefeller check records President Ford and vice presidential nominee Nelson Rockefeller look at copies of Rockefeller's political campaign contributions during their White House meeting Tuesday. Rockefeller will appear today before the Senate Rules Committee which is investigating his recently disclosed $2.5 million gifts and loans to political associates and a biography derogatory to his 1970 New York gubernatorial opponent, Arthur Goldberg. In a letter to Congressional leaders, Ford urged quick action on the nomination. Speaker Carl Albert said he expects Congress to make a final decision by the end of the yefer. 'R b f its pir op erty to M by Greg Nye Staff Writer Five of Roberts Associates largest apartment complexes in Chapel Hill and Carrboro are scheduled to be sold by public auction within a month. The auctions are being held by two insurance companies which are foreclosing mortgages on the apartments after Roberts Associates failed to make October payments. Yum Yum apartments in Carrboro will be auctioned at the apartment complex Nov. 30 because of defaulted payments on a $1,300,000 mortgage to lhe Union Mutual Life Insurance Co. Roberts Associates borrowed the money for Yum Yum apartments three years ago. A spokesman for Union Mutual said Tuesday Roberts Associates had made all mortgage payments except last month's. Estes Park and Royal Park apartments in Carrboro, along with Kingswood and Booker Creek apartments in Chapel Hill will be sold at the Orange County Courthouse on Dec. 9. Mortgages on the properties and a second mortgage on Yum Yum apartments total $6,600,000 and are being foreclosed by Mutual of New York Mortgage Investors. Bobby Roberts, president of Roberts Associates, would not return a telephone call Tuesday inquiring about this situation. Another company spokesman refused to comment on why Roberts Associates failed to make its mortgage payments. Unless Roberts can pay off or refinance the properties, before the dates set for the auctions, the apartments will go to the highest bidder. Mortgage companies usually bid the amount of the mortgage and take over the property at foreclosure sales. Tenants' leases are not affected by foreclosure sales they must be honored by the purchaser. A change in management, however, is usually made by the new owners. A Union Mutual spokesman said Tuesday that his company is "keeping the door open for Roberts Associates to make their mortgage payments." But Union Mutual began collecting the rent from Yum Yum tenants this month after Roberts Associates failed to make the October payment. Union Mutual obtained a restraining order to keep Roberts Associates from collecting rent. McCarffiyyii:pi fomiinidloff May run as presidential candidate in '76 t lllliliilillliiilii (llllllll Staff photo, by Martha Former Senator Eugene McCarthy by Kevin McCarthy Managing Editor : Former U.S. Sen. Eugene J. McCarthy, poised on the brink of a possible independent bid for president in 1976, said Tuesday the current, two-party political system is not working well and, at times, "comes close to being unconstitutional." "There is something wrong" with the political process he said, "if Nixon could win by 18 million votes in 1972." During an interview, McCarthy cited the recently passed federal campaign financing act as an example of an unconstitutional law, "repugnant to democracy, free society and the free political process." "It's as if the government is saying, 'We won't have one established religion, we'll have two (the Democratic and Republican parties.) " He and his lawyers plan to file suit within the next two or three weeks challenging the law as unconstitutional, discriminatory to third . parties and potentially damaging to freedom of speech and the First Amendment. McCarthy said he plans to take the case to the U.S. Supreme Court. The "lack of substantative issues," the record of the. last two administrations, the "state of confusion within the Democratic party" and the unresponsiveness of the Republicans all have led him to conclude, he said, that there must be a better way to pick Presidents. I So he has discarded the Democratic party and has emerged, after eight years of relative obscurity since his unsuccessful, 1968 presidential bid, as honorary chairman of the Committee for a Constitutional Presidency an independent third party which hopes to run a candidate for President in 76. (McCarthy, however, is not necessarily the party's final choice. Gov. Tom McCall of Oregon, he said, is another possibility.) Once the happy recipient of the considerable energies of envelope-licking, door-to-door-canvassing college students electrified by his anti-Vietnam War stance, McCarthy said he. understands the current apathy on campus. . Considering the presidential choices of the last two decades, he said, "I don't blame them for being apathetic. They received a severe shock in 1976 for honest, dedicated efforts." Speaking in conjunction with the Student Government's Colloquium on Individual Rights and Liberties, the senator said universities have a special responsibility to challenge ail institutions within society, whether religious, economic or political. Keeping this function in mind, McCarthy said students should be aware of the "growing dependence of universities upon government support and the regulation and controls that go along with it." Students, he said, should also be concerned about grants from foundations which do not "operate as pure spirits in society" , and that the curriculum is so balanced that "you at least have access to the truth." "We have come to suspect there are three or four systems of justice in the United States," he said, one delineated in the Constitution, one for the poor, one for the military and a fourth for students. Hecited Kent State as an example of the latter. "What happened at Kent Sate would never have happened if the National Guard had confronted adults instead of students." McCarthy also listed four developments in this country not anticipated in the Constitution over which students should be concerned: the extensive involvement required by current U.S. foreign policy; an econony controlled by 70 to 80 major corporations; the huge military establishment; the considerable domination of the government by political parties. Although the timetable for the selection of a third party candidate is still uncertain, McCarthy said his group will shortly bring legal action against states where requirements for individual electors are what he considers too severe. The party will then petition all 50 states to place its presidential candidate on the ballot. He said he is encouraged by the findings of two - recent polls: A Gallop poll reported that 34 to 36 per cent of the nation's registered voters are independents; and the obscure Sindlinger poll reported that 55 per cent of those surveyed would like to have a choice of candidates other than Democratics and Republicans. McCarthy said he expects a significant response from students to his campaign. "1 think there's a chance a real movement could be developed by 1976."
Daily Tar Heel (Chapel Hill, N.C.)
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Nov. 13, 1974, edition 1
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