Showers expected today
with highs around 50 and
lows tonight in the lower
30s. Highs tomorrow will
climb into the mid-60s.
The UNC women's basket
ball team thrashed Wake
Forest, 91-54, Wednesday
night to regain their con
fidence going into the ACC
'tourney. See story on page 9.
Serving the students and the University community since 1893
Copyright 1984 The Daily Tir Hed. All rights reserved.
Volume 91, Issue 139
Thursday, February 23, 1984
Chapel Hill, North Carolina
NewsSports; Arts 962-0245
Business; Advertising 962-1163
Economists predict continued r growth for North
By VANCE TREFETHEN
North Carolina should continue its steady economic growth
in 1984, business experts say, but they are less optimistic about
1985 and beyond.
Despite the possible gloom on the horizon, economic
forecasters say North Carolina will be among the top states in
economic growth this year.
"I was impressed with what a broad-based kind of growth we
have," said John Hekman, associate professor in the UNC
School of Business Administration. "North Carolina will pro
bably be in the top 25 percent of the states in growth in 1984. In
terms of absolute economic growth, North Carolina comes in
pretty high," he said.
Much of this growth will occur because businesses see North
Carolina as a good location to open new facilities and plants,
The UNC-Charlotte, First Union North Carolina Economic
Officials predict a
'banner year' for
county 's economy
By SARAH RAPER
Unemployment figures and retail sales figures support local
businessmen's predictions that this will be another good year for
the Orange County economy.
So far in 1984, business is going extremely well, said At wood
Askew, Chapel Hill-Carrboro Chamber of Commerce vice
"Everybody is thinking very positively at this point," he said.
"It looks like it's going to be a banner year."
Orange County unemployment, at 2.8 percent in December,
1983, was down from 3.3 percent in December 1982. Unemploy
ment figures do not include students.
Maurice Elliott, Chapel Hill Employment Security Commis
sion branch office supervisor, said Orange County traditionally
has the lowest unemployment in the state. He said Chapel Hill's
economy is more stable than that of other areas of the state
because it is service-based.
"In service-related jobs, such as government jobs and
educators, jobs, there is a lower unemployment rat?. because;
these services are essential," Elliott saidr "These" people are
traditionally more secure."
Elliott said the number of job-seekers placed in jobs peaked
in August and September of 1983, then leveled off.
He said placements dropped significantly during December.
1983 and January 1984 because retailers were involved with tak
ing inventories and the weather delayed construction jobs.
Elliott said he expects the number of both part-time and full
time jobs placements to increase steadily throughout the spring
and jobs to be available for UNC summer school students.
The Chapel Hill ESC office is a branch of the N.C. Employ
ment Security Commission. Located at 317 Caldwell St. exten- '
sion, it has been open only four weeks. Previously, the Durham
branch office matched up Chapel Hill-Carrboro employers' re
quests with job-seekers.
"We're hoping the new office will improve the number of
local placements," Elliott said. He said the local ESC branch is
working to publicize services to local employers, who should be '
more willing to use the agency since it is closer. '
While unemployment is down, cost-of-living estimates for the
area are the highest in the state.
A cost-of-living index developed by the U.S. Chamber of
Commerce shows that Chapel Hill-Carrboro was 4.4 percent
above the national average. The index is based on 59 items and
excludes taxes and non-consumer expenditures.
All other N.C. cities were below the national average, accor
ding to local Chamber of Commerce figures. Raleigh was closest
to Chapel Hill, at only 0.5 percent below the national average.
Charlotte was 2.8 percent below the average' and Greensboro
was 5 percent below the national figure. Rocky Mount boasted
the lowest figure in the state at 11.4 percent below the national
The cost-of-living index is also broken down into six
categories including housing.
Chapel Hill was almost 16 percent above the national average
for housing costs, which takes into account purchases and ren
tals. Raleigh housing costs, 8.4 percent above the national average
were closest to Chapel Hill's costs. Charlotte's costs were 2.8
percent above the national figures; Greensboro's costs were 2.1
percent above the average. Rocky Mount was lowest in the state
at 24.1 percent below the national average.
Barbara Pipkin, president of the Chapel Hill Board of
Realtors, said the high demand for housing in Chapel Hill ex
plains the cost.
"We have the number one public school system here in
Chapel Hill," Pipkin said. "As a result, people who are not
employed here, people who work at Research Triangle Park or'
in Durham, choose to live here.
She said retired persons often seek housing in Chapel Hill
because of the University's educational and entertainment
resources and because of nearby medical facilities.
High demand for housing coupled with low interest rates for
home loans should mean a strong year for local builders.
In Chapel Hill, permits for 69 single-family and multi-family
dwelling units were issued between July 1982 and January 1983.
See LOCAL on page 3
Forecast, published in November 1983, gives a similarly op
timistic outlook for 1984.
"During 1984 the North Carolina economy will add 85,000
new jobs, increasing the year-end seasonally adjusted establish
ment employment level to 2,496,200 persons," the report said.
"During 1984, Forecast (the report) expects the North
Carolina seasonally adjusted unemployment rate to continue to
decline. By year's end the rate will dip to 6.7 percent. The
average unemployment rate for 1984 should be 6.9 percent,
which is a substantial improvement over the 1983 average rate of
The report also said 1983 was a year of rapid growth for
North Carolina, with growth carrying over into 1984. Gross
State Product, or North Carolina's measure of the total output
of the state's economy, went up 6.3 percent in 1983, according
to the report.
Several economists expect 1983 growth will continue in 1984,
but at a slower pace.
"Our forecast is that real GSP will be up 4.5 percent (in
1984)," said Bob Allsbrook, chief economist at First Union Na
tional Bank in Charlotte. "The national estimated increase is 5
percent," he said.
Allsbrook said that a slowdown of growth in 1984 would be
normal, since the North Carolina economy grew much faster
than other states in 1983. But though the growth rate will not be
as high as last year's, Allsbrook said some sectors of the North
Carolina economy will still be very strong.
"The areas of relative strength will be construction, non
durable and durable goods, and wholesale trade," he said.
Specific industries within those categories with good growth
potential include furniture, trucking, textiles, and tourism.
But not all industries are expected to improve in 1984.
"The outlook for tobacco does not look good in 1984,"
Both business and government economists suggest several
reasons for North Carolina's optimistic economic outlook.
Consumer confidence in the economy is a major contributing
factor, said Michael Kiltie, a representative for the Office of
State Budget and Management in Raleigh.
"That (consumer confidence) is reflected in the sales figures
He cited specific industries that will lead the way for North
Carolina's economic growth in 1984.
"Towards the end of the year, we'll see an acceleration in
non-residential construction. In textiles we're seeing (production
capacity) utilization rates around 90 percent. The buildup in
defense spending should have some positive effects on North
Carolina,". Kiltie said.
Kiltie , warns that the high federal deficit may slow the
economy down in 1985.
"Unless there's some effort by Congress to cut the deficit,
there will be a clash in financial markets between public and
private demand for capital," Kiltie said. "A slowdown is likely
for 1985, but not necessarily a recession," he said.
Allsbrook agreed that the deficit will hurt the North Carolina
economy but said that its effects have already begun.
"The deficit is affecting us already. It has a crowding-out ef
fect that raises the price of money," he said. "The cost of
money is crowding out investment spending."
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Reggie Holley (District 11), standing, speaks at the opening meeting of the CGC's
66th session. The CGC elected Holley its speaker Wednesday night. Seated are,
from left, Ryke Longest (District 15), Dawn Peters (District 9), Holley, Connie Brown
talk on hearm
By JIM ZOOK
Little new information was made
public after Wednesday night's pretrial
hearing of the Student Supreme Court
concerning the Elections Board dis
qualification of Daily Tar Heel candidate
A court order issued by Chief Justice
J.B. Kelly restricted all involved parties
from commenting on the specifics of the
hearing, which was preliminary to an
open session of the court to be held Fri
day. Hiday was disqualified February 15 by
the Elections Board for submitting his
campaign expense form 35-40 minutes
after the 5 p.m. Feb, 14 deadline.
Kelly gave a summary of what
transpired during the pretrial hearing,
citing five key issues to be resolved.
. .The Jfirst is, whether, the Elections
"Board was comprised properly and con
stitutionally," Kelly said. "The question
there is whether or not they had two
graduate students or needed more than
two graduate students."
The Student Constitution states that all
institutions created in the constitution
must have a number of graduate students
in proportion to the number of graduate
students in the student body. The General
Elections Laws require the Elections
Board to have two to five graduate
"The second issue is whether or not
that 5 p.m. rule shouldn't be automatic
disqualification, but should only be dis
qualification if it materially affects the
outcome of the election," Kelly said.
The General Elections Laws state that
all candidates must submit their cam
paign expenditure forms by 5 p.m. on the
day of the election. But Hiday is conten
ding, that under the laws, only infractions
that materially affect the outcome of the
election are grounds for disqualification.
"The third issue is whether or not the 5
o'clock rule is constitutional," Kelly said.
"The fourth issue is whether or not the 5
o'clock is grounds for automatic dis
qualification or discretionary dis
qualification because of the language.
Kelly said the last issue is if the Court
upholds the Elections Board decision on
disqualification, whether the votes cast
for Hiday should become void or count
in the total number of votes. If Hiday's
votes were void, Christine Manuel would
be declared the winner.
If they were counted, ManueL would
not have a majority of the votes cast and
would face third-place finisher John Con
way in a runoff.
Kelly explained the format for Friday's
hearing which will begin at 4:30 in the
Kenan Court Room in the Law School
"Each side will have 10 minutes to
make opening statements," Kelly said.
Then each side will present evidence, in
cluding witnesses, and then each side will
have 15 minutes (for closing
Kelly said eight witnesses are expected
to testify Friday, "about four from each
side." He said he hoped the hearing
would be done within three hours. But as
for a speculation on how long it would
take for a decision to be handed down,
Kelly was uncertain.
If another election is deemed necessary
by the Court, Kelly also was not sure on
when it would be conducted.
"I think that the way I understand the
laws, a re-election can be held as early as
Tuesday," Kelly said.
Kelly issued an injunction Feb. 16
delaying certification of the election by
the Elections Board until the entire mat
ter is resolved.
In the general election Feb. 14, Hiday
captured votes from 2,072 of the 5,350
students who went to the polls. Manuel
received 1,964 votes; Conway, 701; and
Frank Winstead had 238 votes.
Says withdrawal not a surrender
eagan defends Marine redeployment to ships
The Associated Press
WASHINGTON President Reagan
Wednesday night defended his decision to
withdraw Marines from Beirut and said, "We
are not bugging out, we are just going into a
little more defensible position.
"I don't think you can say we have lost as
yet," he told reporters during his first formal
news conference of 1984
In a long and rambling answer to a question
concerning whether the United States had lost
credibility during the recent turmoil in
Lebanon, Reagan referred to the Marine
withdrawal as "redeploying" and said
American forces couldn't just "stay there as a
target, hunkering down.
"But as long as there's a chance for a
peaceful solution ... we're not bugging out,
we're just going into a little more defensible
Some 1 ,300 Marines are being withdrawn
on Reagan's orders from near the Beirut air
port to U.S. naval ships offshore as Lebanon's
government and army are battered by Syrian
Reagan said his decision for a redeployment
did not represent "surrender" or a "cut-and-run"
policy of any kind, adding that the
Marines could be sent back into Lebanon if
that would "improve the possibility of carry
ing out their mission.
"I don't see their mission as being over
yet," the president said.
He labeled as "disgraceful, frankly,"
speculation that Secretary of State George P.
Shultz might resign because of the failure of
American attempts to work out a solution to
the Lebanese crisis.
Reagan also said it is a fiction that he is not
in charge in his administration or that he waits
and sits back to be told what to do by advisers.
That "shows a lack of understanding of
how our systems works," he said.
On another matter, Reagan said critics who
say he is not working hard enough at being
president "don't know what they are talking
He said he goes home carrying a load of
The first question of the news conference
dealt with Lebanon. Reagan was asked if he
thought the United States has lost credibility in
view of its failure to achieve its purpose the
withdrawal of all foreign forces from
"In the first place, no, I don't think you can
say we have lost as yet," Reagan replied. "I
know that things don't look bright, as bright
as they have in the year and a half since
they've been there," referring to the Marines.
But he said he had not given up hope of
achieving American goals. He outlined a
history of long warfare in that region.
In a sharply partisan opening statement,
Reagan urged Congress to act quickly to pass
legislation reducing federal budget deficits,
allowing prayer in public schools and
strengthing criminal laws. Reagan said the
items should be "at the top of the domestic
agenda for the next 10 days."
Bipartisan talks between the White House
and Congress aimed at reducing staggering
budget deficits resume Thursday and the presi
dent declared, "It's time to get down to
"Democratic representatives have begged
away from all but one meeting," the president
said. "It's ironic that those who demanded
negotiations have been so reluctant to
Reagan added, "If we don't act soon we'll
lose another year to fruitless political postur-,
ing and legislative stalemate."
The president was aRtu Vie ''feared the
long war between Iran and Iraq would lead to
a closing of the strategically vital Straits of '
Hormuz in the Persian Gulf.
"There's no way that we, could allow that
channel to be closed," he said.
He noted that the United States has a per
. manent naval force in the gulf.
Reagan had spent most of the day studying
briefing papers and preparing answers to
As usual, two hours were set aside in the
afternoon for the president and his aides to
meet in the family theater at the White House
for a trial run of impromptu answers to ques
tions that Reagan might be asked at the half
hour news conference.
In the past, .officials have expressed some
pride that they were able to anticipate most of
the questions Reagan was asked at a news con
ference. Since he took office more than three years
ago, Reagan has held 21 news conferences,
fewer so far that any other recent president.
Divided jury causes mistrial in Allison case; judge raises bail
By MELANIE WELLS
HILLSBOROUGH A divided jury
forced Superior Court Judge E. Lynn
Johnson to declare a mistrial Wednesday
in . the case of Danny Nathan Allison,
who is charged with breaking into a
UNC woman's room in Morrison dorm
June 5 and sexually assaulting her.
The jury, which deliberated about
eight hours in the case, remained divided
7-5 and was unable to make reasonable
progress toward a verdict, said jury
representative Richard A. Baddour, dean
of admissions at the UNC law school.
Johnson made the decision at 4 p.m.
Allison also faces 15 other felony
charges in connection with a series of
assaults against UNC women last spring
and summer. The recent trial, however,
centered only on a breaking-and-entering
charge and a first-degree sex offense
stemming from the June 5 incident.
Immediately after the. declaration of
the mistrial, Allison was served with a
warrant for arrest in connection with
another case in the series of assaults, and
the judge raised Allison's bail' from
$50,000 to $100,000. District Attorney
Wade Barber asked for the increased
bail because he said the state was con
cerned that Allison might -try to in
timidate the four women who testified
against him. x
The public defender for Allison,
Robert Mahler, said there were no
reasonable grounds on which to raise the
bail. "There's no evidence he has con
tacted or threatened anyone," he said.
Michael Kessler, a law student working
with the defense, said Allison would be
held in jail until his family meets the bail
or until his next trial.
"This is definitely not an acquittal,"
he said. "The state can try him again on
these charges or bring in some of the
other charges against him."
Allison was arrested on August 6,
1983, after being identified as having at
tempted to break into a Foxcroft apart
ment that morning.
He had been under surveillance by the
State Bureau of Investigation after a
Burlington man gave the police a descrip
tion of someone resembling Allison who
used a Wachovia bank card stolen from,
one of the UNC women assaulted.
Allison admitted he was in Burlington
mat day but said he had only visited a
minister there. Allison testified that he
had plans to become a minister himself.
In his closing statement, for the pro
secution Tuesday, Barber said that fibers
from a sock used to gag one of the victims
were consistent with three different
carpet fibers from Allison's Northamp
ton apartment. .
Kessler said that there were nine colors
of fiber in the carpet and that the three in
the sock could easily have come from any
other similar color of carpet.
Barber said one victim identified
Allison in court as her assailant upon
hearing ms voice when he testified. Her
eyes had been covered with tape too
quickly for her to see her attacker.
"He has the same voice," Barber said,
"just as he has the same ears, eyes, nose
and cheekbones that the Morrison victim
"There's no way these women are go
ing to believe that it wasn't Allison who
attacked them," Kessler said, "but
there's no way his friends and family will
believe that he did."
Both the prosecution and the defense
said there would probably be another
trial within several weeks.