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Serving the students and the University community since 189
Volume 85, Issue No. 19
Thursday, September 22, 1977, Chapel Hill, North Carolina
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T LANCE RESIGNS;
YS 'MY CONSCIENCE
IS CLEAR ' IJV LETTER
Bert Lance, director of the Office of Management and Budget,
resigned Wednesday; President Carter said, 'I think he's made
the right decision.' Lance remains convinced that he could
continue to manage effectively the OMB. File photo of the
President by David Dalton; Lance photo courtesy of TIME.
WASHINGTON (UPI) - President Carter, his voice
choked with emotion, announced Bert Lance's resignation
Wednesday, saying his close friend and budget director
decided independently to step aside and "I think he's made the
In a televised news conference delayed two hours so Lance
could compose his farewell letter. Carter acknowledged some
of the allegations against Lance were true, but placed much of
the blame on the "extraordinary standards" his
administration has tried to set.
Although the President said he agreed with Lance's decision
to return to Georgia after eight months in the administration,
he paid strong tribute to the 46-year-old banker and said he
considers him irreplaceable. He did not name a successor
Lance, in a letter Carter read at the news conference, said
his conscience remains clear and he still feels he could be an
effective budget director.
But, noting the continuing controversy surrounding his
name, Lance said: "I have to ask the question: At what price
do I remain?"
"I am convinced that I can continue to be an effective
director of the Office of Management and Budget," Lance
said. "H owever, because of the amount of controversy and the
continuing nature of it, I have decided to submit my
resignation as director of OMB,
"I desire to return to my native state of Georgia."
"Bert Lance is my friend. I know him personally as well as if
he was my own brother. I know him. . .to be a good and an
honorable man... nothing that i have heard or read has
shaken my belief in Bert's ability and integrity."
Carter said Lance's resignation was "a courageous and also
a patriotic decision. . . I don't think there is any way 1 could
find anyone to replace Bert Lance who would be as
competent, as strong, as decent and as close to me as a friend
and adviser as he's been.
"His replacement will be adequate, of course. . . But I don't
think 1 can find anyone to truly replace him."
Lance has been under intense pressure to resign for several
weeks to resign for several weeks due to allegations stemming
from his years as a Georgia bank executive. He acknowledged
incurring large bank overdrafts and other problems.
But he denied trying to hide his past from the Senate
committee which recommended his confirmation as budget
director in January and he said he never used political clout to
get the federal government to close investigations of his
Carter said Lance did a"supcrb"job of defending himself in
three days of testimony before the Senate Governmental
Affairs Committee last week and "he was able to clear his
name when he testified."
Carter said he had met with Lance for 45 minutes Monday
and "1 told Bert I thought he had exonerated himself
completely ... and asked him to make his own decision" about
University radio station continues to broadcast
By BERME RANSBOTTOM
WXYC continued normal broadcast
, operations Wednesday after receiving a vote
i of confidence from the Campus Governing
, Council (CGC) Tuesday.
The radio station had considered going off
' the air if such a vote was not passed.
The CGC passed a resolution recognizing
Student Educational Broadcasting, Inc.
(EB) and its bylaws Tuesday, a move which
virtually grants autonomy to WXYC under
The resolution came after nearly six hours
of Media Board and CGC meetings on
WXYC's proposal to become an
autonomous organization, separate from the
Media Board, under the control of SEB.
The Media Board voted earlier Tuesday to
table WXYC's proposal for autonomy,
pending consultation with a lawyer
specializing in communications law.
Disagreement between WXYC and the
Media Board has centered on the station's
contention thatjt is operating illegally if the
Media Board controls the station's budget
and the appointment of its general manager,
while SEB retains programming and
Federal Communications Commission
(FCC) regulations, which govern the
licensing of radio stations, require that a
single incorporated body control budget,
programming and editorial decisions.
WXYC Chief Engineer Paul Matthews
told the CGC that the station would be
forced off the air at midnight Tuesday if a
resolution recognizing SEB and its bylaws
was not passed to avoid the possibility of
"With that vote of confidence, we've taken
it as authorization to stay on the air and we'll
continue on the air," said David Madison,
WXYC business manager.
"The position of the station was
precarious," Madison said. "We were right
on the razor's edge; if the CGC had laughed
or if they had voted to table us again, we
would have gone off the air and potentially
damaged this station."
The CGC had voted earlier during its
meeting to table an additional budget
request by WXYC until its meeting next
The CGC resolution "urges the Media
Board to resolve whatever conflicts exist
between its bylaws" and those of SEB.
"It's unfortunate that the CGC got
themselves into a position where it could be
coerced by WXYC," said Patty Turner.
Media Board chairperson.
"In the Media Board meeting they were
threatening to close down that evening and
we had ascertained that it was not necessary
for them to do so," she said.
Turner said WXYC's request for
autonomy at the Media Board meeting was
tabled because of other pressing business
regarding the Yackety Yack and the manner
in which WXYC sought the autonomy of
"I have maintained that the way WXYC
personnel went about the whole thing of
SEB and letting them become separate and
autonomous was not open," Turner said.
"They cannot expect to come to a meeting
when board members have heard all these
rumors and not have them vote to table it."
WXYC officials had not informed the
Media Board of their intent to present the
proposal to the board Tuesday. Turner said
she was unaware that WXYC was moving so
quickly on the issue until she was informed
by the Daily Tar Heel.
Students may get special permits for lofts
By AMY McRARY
A special permit system that allows lofts in dormitory rooms was
approved Wednesday by a UNC Department of Housing committee.
The requirements will bp compiled this weekend so committee
members can study them.
Members must then contact Russell Perry, assistant director of
housing for operations, before 2 p.m. Monday if they believe any
changes are necessary. The policy will be sent to Director of H ousing
James D. Condie.
Perry said Wednesday Condie then may discuss the policy with
Vice Chancellor for Student Affairs Donald Boulton. "And we may
run it through the health and safety office," Perry said.
Under the new policy, any student who wishes to build a loft would
complete a permit form and submit it to his or her residence director.
The student would be required to sign the permit form, stating that he
understands and will comply with the regulations concerning the
He must also sign a form releasing the U niversity from any liability
he might suffer as a result of having a loft.
The student then would have two weeks to construct his loft. At
that time the bed would automatically be inspected by the
University's maintenance supervisor.
If the student's loft did not comply with the regulations at
inspection, he would be given another week to bring it up to
standards. Another inspection would follow. If the loft is still deemed
unsafe, the student must pay the housing department to take his bed
When the loft is inspected, the maintenance supervisor will check
to be sure it complies with the following rules:
A ladder must be angled to bed level and permanently attached
to act as a brace for the loft.
The loft must be painted with fire-retardant paint. Perry said
Tuesday the paint would be supplied by the Department of Housing,
Four-inch nails are the minimum that could be used to support
the lofts. Bolts are not required but are suggested.
Four columns of a 4-by-4 inch width are required to support the
structure. Two-by-four inch crosspieces are also required, and the
plywood for the loft itself must be a minimum of three-eighths of an
Matresses supplied by the Department of Housing will fit lofts of
these dimensions, Perry said.
The student must have headroom when using the bed.
No rails or treated wood of any type are required.
"We will inspect the three lofts that have remained up," Perry said.
"If they're okay, they can be left up for one year only, as there's no
sense really in taking them down if they're safe.
"If they're not safe, they will have to be taken down."
If a student wished to use the University housing bed frame and
elevate it using stilts, he must also follow certain regulations, the
The student must use angle iron or 4-by-4 inch plywood for the
stilts. The stilts must be secured with U-bolt fasteners.
Jenne, Temple disagree
on bus contract prospects
By HOWARD TROXLER
The town of Chapel Hill and the
University will probably reach an
agreement over the terms of the bus
contract for this year "within the next few
days," Town Manager Kurt Jenne said
Jenne sent the latest version of the bus
contract to Vice Chancellor for Business
and Finance John Temple Monday.
"We'll probably execute the agreement
within the next couple of days," Jenne
But Temple said Wednesday he is not
completely satisfied with the terms of the
contract. "I have reviewed the contract
and am dictating back to Mr. Jenne the
things in it that need to be modified,"
Temple said he wanted to be sure of the
terms of the agreement before the
University approved it.
One of the reasons the agreement has
not been signed is a conflict over the night
shared-ride taxi service. The University
earlier this year refused to honor a
contract agreement made this summer
because the taxi service was not included
in the agreement but was included in the
The town has replaced night bus
service with a shared-ride taxi service a
move Temple has said was not specified
in the summer agreement.
"We want to know exactly what the
contract is and what options we have if
the night taxi system doesn't work out."
Temple said earlier this week.
Chapel Hill Transportation Director
Bob Godding told the Chapel Hill
Transportation Board Tuesday night that
Chapel Hill has asked the University to
give the taxi service a try until Oct. 31.
After that time, the town will consider
changing the terms of the taxi service.
The night taxi service was instituted by
the town at the beginning of the semester
on an experimental basis, Jenne said.
Under the terms of the latest proposal,
the taxi service will be re-evaluated
several times during the semester.
"If the shared-ride taxi service doesn't
work out. we're not going to bind
ourselves to it," Jenne said.
The University balked at a finalized
bus agreement earlier this summer, when
the town asked the University to step up
its subsidy to $400,000 for Chapel Hill
service. Under a compromise, the
University agreed to pay $366,000 for
Chapel Hill service, plus a $33,000
subsidy for the Carrboro bus route.
But Temple refused to finalize that
agreement this fall when the taxi service
was initiated, saying the service outlined
in the contract proposal made in early
August containing the taxi service "was
not the same as what we had agreed to
Temple maintained that some sort of
night bus service is necessary for students
w ho travel back and forth from campus.
Temple now will send his review of the
contract back to Jenne. The two officials
said they will meet within the next few
days to discuss any objections Temple
may have to the latest contract.
Miller, Anheuser breweries wage war for number-one sales
By KEITH HOLLAR
The war is on between the beer barons.
Miller Brewing Co.'s assault on industry
leading Anheuser-Busch, Inc.. has become
so intense that Miller may topple Joseph
Schiltz Brewing Co. from its position as the
second-leading producer of beer in the
United States. The battle also threatens the
existence of the smaller producers,
particularly the regional breweries.
"Miller is N o. 3 in the country, but we very
possibly could be No. 2 by the end of this
year," said John Lamb, vice president of
Lamb Distributiong Co. in Durham, which
distributes Miller beer to the Chapel Hill
area. "If not this year, then next year," he
Miller began the attack on Anheuser
Busch in 1970 and intensified the assault
with a massive advertising campaign last
year. Anheuser-Busch retaliated with its own
barrage of new brews and marketing
techniques designed to retain its 20-year
grasp on the No. I position.
The fight began when Philip Morris, Inc.,
the nation's second-largest cigarette
manufacturer, bought Miller Brewing Co.
and began to employ its marketing expertise
and advertising muscle to sell beer. In just
seven years. Miller has made an
unprecedented climb from eighth to third
position in the beer industry.
In 1976, Miller increased its barrelage by
43 per cent while the entire beer industry
grew less than 2 percent, according to Lamb.
"Philip Morris did sink some money into
promoting Miller beer," Lamb said last
week. Including the purchasing cost, Philip
Morris has spent approximately $500
million to revitalize M iller. The massive cash
outlays have resulted in soaring profits per
barrel because of increased volume and
According to Lamb, local sales of Miller
beers are up 70 to 80 per cent for the last year.
Sales increases for the area. Anheuser-Busch
distributor, Harris, Inc., in Durham, are
about normal. Company President Joe
Harris said, "normal" is very substantial.
In addition, Chapel Hill retailers report
that Miller beers are leading slightly in the
sales race, followed by Anheuser and Schlitz
Marketing is Miller's forte. The company
has concentrated on dividing the market into
demand segments and providing products to
The company's first major breakthrough
was in the area of packaging. When Miller
introduced its 7-ounce bottle two years ago
(standard size is 12 ounces), some believed
the ploy was useless. But the skeptics' minds
have been eased.
"People said Miller was a fool when they
introduced the 7-ounce bottle," Lamb said.
"But judging by the sales. I guess there are a
lot of fools out there."
Miller's second brainchild was the
introduction in January 1975 of Miller Lite,
a low-calorie beer. Although not the original
beer, Lite was the first heavily promoted beer
of its type, and it turned out to be the most
successful new beer in years.
With a barrage of ads directed at athletic
minded young males, M iller set out to clench
the market for which its new product was
designed. A year later, the company was
selling approximately five million barrels of
Lite annually, equal to its total beer
production four years earlier.
"There was a market, and Miller went out
there and got it," according to Lamb, who
said sales of the new beer accounts for 1 8 to
20 per cent of his total beer sales.
Miller now is testing an even lighter beer,
Player's, whose sales, Lamb said, are
running ahead of Lite's when it was first
To counter Miller's advances in the sales
of light beer, Anheuser introduced itso own
version. Natural Light, in February. The
president of the Anheuser distributor for the
area said the sales of Natural Light have been
"It's selling better than we even
anticipated," Harris said last week. "It's
probably the fastest-growing beer on the
Harris said Natural Light accounts a
substantial and growing proportion of his
total sales, and he credits it with claiming a
share of Miller Lite's market,
Light beers may lack appeal to hard-core
beer drinkers because their alcohol content is
significantly lower than that of regular beers.
For example, Budweiser, the nation's top
selling beer, is 5 per cent alcohol by weight.
But Anheuser-Busch Natural Light is only
3.2 per cent alcohol by weight,
"Anytime you take out calories, you're
taking out alcohol," Harris explained.
Still, the low-calorie beers have found
sizable and growing acceptance among the
nation's drinkers. Such brands are expected
to take 6 to 7 per cent of the market this year,
and possibly could account for 10 per cent or
more of the sales in a few years.
After fragmenting the market wth the
introduction of new beers and packages.
Miller set out to promote their innovations
with a multitude of advertisements,
particularly on television.
Not to be outdone. Anheuser stepped up
its own advertising efforts to record
breaking levels; estimates are that the
company's advertising expenditures will be
up 60 per cent this year over ths $49 million
spent in 1976.
Please turn to page 4
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