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Always be spring of rain
Variable cloudiness with a
possible chance of thunder
storms. High near 60, low
around 40. Southwest winds
10 to 20 mph.
Programmed to rock
J. Bonasia and Louis Con
rlgan review the work of new
synth-pop bands and find
some lack substance. See
Serving the students and the University community since 1893
Copyright 1984 The Daily Tar Heel. All rights reserved.
ii ii ii
Volume 92, Issue 22
Verdict leaves opponents of Klan,
From staff and wire reports
Nine men acquitted of 25 charges from
the 1979 Greensboro slayings of com
munist demonstrators breathed sighs of
relief, while supporters and relatives of
the slain marchers brimmed with indig
nation at the verdicts.
"I'm going back to normal living
now," said defendent Edward W.
Dawson of Greensboro, after the verdicts,
were announced Sunday in U.S. District
Court in Winston-Salam. "It feels like a
ton of bricks coming off you."
Dawson, a former member of the Ku
Klux Klan, was one of the nine present
The Associated Press
SAN SALVADOR, El Salvador
Gunmen in a taxi assassinated the highest
ranking Salvadoran employee of the U.S.
Embassy security staff Monday as his car
stopped at a traffic light, an embassy
The taxi carrying the gunmen drew
alongside the car driven by Joaquim
Alfredo Zapata Romero and the attackers
opened fire, killing him instantly and
wounding his wife, Yolanda, spokesman
Gregory Lagana said".
Zapata's wife was hit in the face and
neck, but the couple's daughter Lindora,
also riding in the car, was not injured,
In battlefield action, the army suffered a
bloody setback when rebels ambushed a
convoy, killing 37 soldiers and wounding
14, according to Col. Carlos Mauricio
Guzman, executive officer of the 3rd In
He said the guerrillas launched their at
tack at 6:30 a.m. near the village of El
Junquillal, 45 miles east of San Salvador,
as the army convoy was traveling along the
Pan-American Highway with the soldiers
returning to San Salvador for an "ad
Vs. a-J attacK planes were sent to support
the troops, and their bombing and strafing
r resulted in "the elimination of a column of
terrorists," Guzman said. He gave no
casualty figures for the rebels.
It was the second sharp government loss
in an ambush in San Vicente province in a
month. On March 24, guerrillas killed 32
soldiers near Tecoluca, 38 miles east of San
Guzman said the battalion ambushed
Monday had been formed recently with
recruits conscripted earlier this year.
The attack on Zapata occurred near the
Camino Real Hotel in northwestern San
Lagana said the security official had
worked for the embassy for eight years
and was chief of Salvadoran security per
sonnel at the embassy, responsible for
about 200 full-time security agents.
The spokesman said Zapata had
nothing to do with investigations of
rightist death squads that have been ac
cused of many of the murders of civilians
since the start of El Salvador's civil war.
"He was a routine investigator,"
Lagana said. "I don't suspect anyone
Zapata had worked for the National
Police and had been chief of the police
criminal investigation unit, a police
Lt. Cmdr. Albert A. Schaufelberger HI,
deputy commander of the American
military advisers in El Salvador, was
assassinated by guerrillas last May as he sat
in his car waiting to pick up his girlfriend
at a local university. He was the only
American military adviser slain in EI
Vermont Royster, a Kenan professor
emeritus in the UNC School of Jour
nalism, was awarded a Pulitzer Prize for
Royster won the prize for distinguished
commentary from the Pulitzer board at
Columbia University, which administers
the competition under the will of the late
publisher Joseph Pulitzer. Royster, editor
of The Wall Street Journal from
1958-1971, writes the weekly column
"Thinking Things Over" for the Journal.
For Royster, 70, it was his second
Pulitzer. "I admit that it's a little more
exciting when you're young and win one
than when you're 70 and win," he said in
an Associated Press interview Monday.
"It gives me a great sense of pride and
satisfaction to win one 30 years after the
He said he had heard rumors that he
might win a Pulitzer. "But don't count
your chickens 'til they hatch," he said.
Royster, a Raleigh native, graduated
from UNC as a Phi Beta Kappa in 1935.
He soon joined the staff of the Journal
and eventually became editor. In 1971, he
returned to Chapel Hill and taught jour
nalism and political science until 1981.
All of us learn to write in the second grade . . . most of us go on to
and former Klansmen and Nazis charged
with violating the civil rights of five
demonstrators who were killed during a
"Death to the Klan" march sponsored by
the Communist Workers Party on Nov.
3, 1979, in Greensboro. An all-white jury
acquitted the nine defendents Sunday
after a 14-week trial.
Six Klansmen and Nazis were found in
nocent of murder in a 1980 state trial.
The nine current and former Klansmen
and Nazis, including five of the original
defendents, were indicted last year on
federal civil rights charges . after civil
rights and church groups blasted the acquittals.
: o r ' ? ''' , - ' ' ' , -Kix&aV
A kiss for Bugs
Sophomore Pam Haeuser kisses an Easter Bunny played by Eddie Piskura after an Easter egg hunt Monday in Forest
Theatre. A prize was supposed to be awarded to the person who found the most Easter eggs, but the players ate them
before they could be counted.
Local cost of living "index dgSeS
By LISA BRANTLEY
Chapel Hill's cost of living index for
the last three months of 1983 was .01 per
cent below the national average and
represented the second highest cost of liv
ing in the state, according to a study
released last week by the Chapel Hill
Carrboro Chamber of Commerce.
The study, conducted by the American
Chamber of Commerce Researchers
Association, is fairly new to Chapel Hill.
Lydian Altman, retail trade and tourism
coordinator for the Chapel Hill-Carrboro
Chamber of Commerce, said the local
chamber has participated in the study
since the beginning of 1983.
The last report for the third quarter of
1983, conducted by the same organiza
tion, showed a Chapel Hill cost of living
index of 4.4 percent above the national
Although lower costs by comparison
with previous figures were reported in the
areas of transportation, utilities, housing,
health care, and miscellaneous goods and
services, Altman said she attributes some
One can receive a quick course on N.C.
Vky x v X
Tuesday, April 17, 1984
While Dawson and other defendents
were jubilant, opponents of the Klan and
Nazis were upset by the- verdicts.
Yonni Chapman, a Communist
Workers Party spokesman from Chapel
Hill, said Monday that while the Klan
and Nazis were celebrating, communists
and others around the state planned to
double their efforts to educate people on
what happened in the Greensboro rally
and how the two trials failed to reach the
"The main thing about it is once again
there's a tremendous incentive for (the
Klan and Nazis) to organize and recruit,"
Chapman said. "Several things are need
of the lower figure to better local repor
ting of raw data to the researcher's
association. "We're more or less getting
the reporting down pat," she said.
The Chapel Hill-Carrboro chamber is
responsible for pricing a standard list of
goods and services within the town's
limits at the same businesses every repor
ting period to ensure consistency and sen
ding them to the research association to
be turned into statistics.
One reason that the cost of living index
dropped was through lower health care
costs during the 1983 fourth quarter
reporting period. Durham County
Hospital and Duke Medical Center, as
well as North Carolina Memorial
Hospital costs were figured in the third
quarter report, but only North Carolina
Memorial costs were included during the
Partly because of this, Chapel Hill's
health care costs went from 15.7 percent
above the national average in the third
quarter, to 4.3 percent above average in
the fourth. v
The cost of miscellaneous goods and
services also decreased from 2.1 percent
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Piifi illustration !'t I ' Ji'ihr.-s
politics by counting the bumpeV stickers on partisan cars
Chapel Hill, North Carolina
ed now,, particularly an immediate and
strong and broad condemnation of the
Chapman, other Chapel Hill residents
and UNC students opposed to the trial's
outcome have scheduled a rally to be held
about 12:15 p.m. today in the Pit. "We
hope to have community-wide action in
Chapel Hill," Chapman said.
The jury reached its innocent verdict in
the trial because federal prosecutors fail
ed to prove the defendents' guilt "beyond
a reasonable doubt," juror William
Henry Johnson of San ford said Monday.
"I'm not saying the lawyers or the prose
cution wasn't sufficient ... but beyond a
below the national average during the
third quarter to 11.1 percent below the
average in the fourth with only groceries
showing an increase within this category.
Transportation costs also plummeted
from 1 .5 percent above the average in the
third quarter to 5.3 percent below the
average in the fourth a drop which
Altman attributed to lower gasoline
Chapel Hill housing and utility costs
made a similar drop between the third
and fourth quarters. Housing costs de
creased from 15.8 percent above the
average to 13.9 percent above, and utility
costs decreased from 3.4 percent above
the national average to 3 percent above.
The study in which Chapel Hill par
ticipated is based on data collected from
227 cities nationwide.
Raleigh's cost of living, 0.7 percent
above the national average for the fourth
quarter, was the highest in North
Carolina. The lowest was Winston
Salem's cost of living at 4.4 percent below
the national average.
reasonable doubt, that's 100 percent;
Jury foreman Ronald M. Johnson of
Burlington said the long trial "has
definitely been hard on all of us
"All I would have to say about it is that
after all the evidence was presented to us
and all the tapes that we reviewed and our
careful deliberations over each indict
ment, we were able to come up with the
not guilty verdict," he said.
When the verdicts were read, KKK
Grand Dragon Virgil Griffin gave a
thumbs-up sign and said he'd attend a
Klan rally this weekend to celebrate his
Rising interest rate has
many disputed effects
By VANCE TREFETHEN
The prime interest rate has increased
twice in the past month, from 1 1 percent
to 11.5 percent and most recently to 12
percent, and economists, businessmen,
and politicians are starting to take notice.
But while most economists agree that the
prime rate, the interest rate that banks
charge their best customers for borrowing
money, is an important economic in
dicator, they often disagree on exactly
what effect interest rates have on the
Some observers believe rising interest
rates will hurt the economy by driving up
the cost of operating a business.
"There's no question that they (interest
rates) play a vital role in the cost of doing
business," said -Gene Sullivan, research
officer for the Federal Reserve Bank of
Businesses often get caught with rising
costs, Sullivan said. They must pay more
to borrow the money needed to maintain
their capital and inventories.
"In an environment such as we're in,
there's probably little chance for them to
pass those costs on to the consumer," he
-Theresult ' iS': a squeeze - that can
sometimes force a firm out of business.
But businesses are not the only ones to
feel the pinch when interests rates go up.
Consumers also must make adjustments
in their spending plans when interest rates
Interest costs are a direct cost to them
(consumers)," Sullivan said. "They have
a direct impact on the size of payments
for houses and cars." A significant
reduction in the interest rate would result
in an increase in consumer spending,
Increasing demands for credit are caus
ing interest rates to go up, he said.
"The extent of demand that exists for
The sticky side of N.C. politics
By JENNIFER MOONEY
. In this North Carolina election year,
chances are that the last campaign
bumper sticker you saw came from an
Political Americana, a political consul
ting and printing agency, handles printing
for most of the Democratic campaigns in
the state, including Gov. Jim Hunt and
the six major Democratic gubernatorial
hopefuls. The company also has printed
bumper stickers for presidential can
didates Walter Mondale and Gary Hart
and former candidates Alan Cranston,
Ernest Hollings and John Glenn.
Jim Warlick, a. former UNC student,
began Political Americana about four
years ago. For the first two years, he
operated out of his home in Asheville,
but now the operation has grown to an
office with five full-time employees and
its own printing shop.
Dee-Dee Oteri, vice president of
Political Americana, said the firm does
political consultanting as well as printing.
For some of the smaller races where the
candidates don't have as much money to
spend on advertisement, Warlick works
with the candidate and advises him on
designs and color schemes. Oteri said that
for the remainder of this election year,
she would not advise any more red, white
and blue since seven candidates have
already chosen this color combination.
The campaigns that have more money
to spend hire professional artists to design
buttons, brochures and bumper stickers.
Major statewide candidates, including
Hunt, who is seeking Republican Jesse
Helms' Senate seat, and gubernatorial
candidates Rufus Edmisten and D.M.
"Lauch" Faircloth usually send Warlick
designs that are ready to be photograph
ed. "We are a small company, conscious
of the Democratic effort," Oteri saM.
"And we work to get Democrats
NewsSports Arts 962-0245
Busirtass Advertising 962-1163
"Man, I think I died and went to
heaven," Griffin said.
Glenn Miller, head of the Carolina
Knights of the Ku Klux Klan, said Sunday
night that the Klan and Nazi members
were victims of double jeopardy because
they had been tried twice.
"It was a violation of their constitu
tional rights to go through the retrial after
being found innocent," Miller said.
"We're outraged at the suffering and per
secution these men and their families
went through for 3'i years. They went
See KLAN on page 2
credit is one major determinant," he
said. An increasing demand for items
financed on credit, such as houses and
cars, along with the growth in the federal
deficit have bid up the price of borrowed
money and driven interest rates up,
But other economists downplay the
possible negative effects of rising interest
"We've just had a surge in GNP for
the last couple years with unprecendented
real rates of interest," said Steven
Rosefielde, UNC associate professor of
economics. "We have simply had an un
precedented recovery through a high rate
Popular misconceptions contribute to
an unwarranted fear of rising interest
rates, he said.
"Invariably the whole interest rate
(issue) is jumbled up in people's minds
and they see it as a cause of depression,"
Interest rates are rising because of in
creased competition for loanable funds,
"The media says that it (the interest
rate) goes up because banks have to pay
more for their funds," he said. "In order
to justify their own interest rates they (the
major banks) point to their costs of
funds. (But) there's competition between
would-be borrowers and it's that com
petition that's driving the interest rate
If interest rates rise much further, con
sumer demand will decline and interest
rates will come back down, he said.
"If interest rate were to go up
significantly, say a couple of points,
you'd see consumer demand go down
very quickly. You'd see that first in hous
ing and autos," he said.
In the long run, money that is diverted
from one sector of the economy because
of high interest rates is simply spent
somewhere else, and no jobs are lost.
elected." The company would not know
ingly do work for a Republican can
didate, she said.
While Political Americana handles
bumper stickers, candidates often have to
seek other firms to get their campaign
buttons made. If a campaign wants
Political Americana to handle the buttons
as well, the firm contacts button
Besides stickers and buttons, a can
didate needs yard signs, and Oteri said
the company handled those requests as
"The candidates know we work for the
others (in the race)," Oteri said of the
possibility that conflicts could arise bet
ween competing candidates whose ac
counts are handled by Political
Americana. The key to keeping all can
didates happy is the fact that all can
didates are given the same attention and
service, she said.
Gary Knox, a campaign staffer for
gubernatorial candidate Eddie Knox, said
displaying a bumper sticker shows that a
person is committed to a candidate and is
proud to tell others about it.
"Political memorabilia is a sign of
commitment and identification," he said.
"The more you see a printed message, the
more it will stay with you."
All of Knox's campaign memorabilia is
cost-efficient, Knox said. The staff
doesn't order items in mass numbers, and
everything is sold in order to pay for
On the Republican front, gubernatorial
candidate Jim Martin sends all of its
advertising to an agency in Washington,
Diane Murphy, a spokeswoman for
Smith and Harross in Washington, said,
"the main thing a candidate looks for is
cost efficiency." She said that a candidate
with much experience wjth the media,
such as Martin, doesn't need as much ad
vice as a newcomer, and they often keep
their traditional color schemes.