Columbia Missourian Newspaper 1981-10-02

              74th Year No. 16 Good Morning! It's Fridaj. October 2. 1981 2 Sections - 20 Page - 25 Cents
Reagan confident program will work
WASHINGTON ( UPI) - President Rea-gan
declared Thursday he " will not be
swayed" from his economic recovery pro-gram,
and vowed to keep federal spending in
line by vetoing appropriations bills from
Congress that would " bust the budget "
He also issued a veiled warning to Israel
on its opposition to the proposed sale of
AWACS radar planes to Saudi Arabia, and
promised he will not allow the oil- nc- h Arab
state to " be an Iran "
At a news conference on the opening day of
the new fiscal year. Reagan defended his
budget cuts against critics who say the re-ductions
will hurt poor Americans and ex-pressed
confidence his tax cuts will spur eco-nomic
renewal
" What we call our safety net is still in ef-fect,"
he said " I don't say there won t be
some reductions but those totally de-pendent
on federal income nothing will
happen to them."
Although Reagan's first formal meeting
with reporters in more than three months
was dominated by questions about domestic
issues, he made an opening statement that
declared it is not the business of other na-tions
to make American foreign policy "
Asked if the remark was a reference to Is-raeli
lobbying against the $ 8 5 billion arms
package for the Saudis, he answered, ' Or
anyone else "
Reagan said the deal including Airborne
Warning and Command System radar plans
and other sophisticated equipment would
significantly enhance the national security of
both Israel and Saudi Arabia by improving
' our chances to work constructively with the
Saudis and other nations of the Middle East
to work toward our goal of lasting peace '
He said the controversial package, formal-ly
presented to Congress earlier m the day ,
represented " no threat to Israel, now or in
the future"
And Reagan said he would ' guarantee '
that the sensitive AWACS technology would
not fall into hostile hands if provided to the
Saudi regime, which some have suggested
faces threats similar to those that toppled
the shah s regime in Iran
There is no way that we could stand by
and see that taken over by anyone who would
shut off our oil,' the president said
I have to say, Saudi Arabia we will not
permit it be an Iran," he said But Reagan
did not specify how the United States might
prevent such a possibility
Wearing a dark blue pin- strip- e suit the
president faced reporters questions in the
formal setting of the White House East
Room
Welcome to my first annual news confer-ence
he joked as he stepped behind the po- -
( See REAGAN, Page 14A)
KariCatm
Shannon Graham ( far right) and Wally Lehmann wait Thursday for Jefferson Starship tickets to go on sale
Fans camp in line for tickets
By Kim Walsh
Missounan staff writer
Sure, they like Jefferson
Starship
But it was their desire to see a
concert any concert from the
front row that drew them to
" campsites" outside the Hearnes
Center box office nearly 24 hours
before tickets went on sale.
By 2 30 pjo. Thursday, 20 people,
alone or in small groups, were
waiting m line for Jefferson
Starship concert tickets, which
won't be sold until 8 30 ajn today.
The Missouri Students Association
Pop Concerts Committee is spon-soring
the Oct 18 performance,
which features Shooting Star as the
warm- u- p band
Equipped with pillows, sleeping
bags and coolers full of food and
dnnk, the die- har- d concert fans
prepared to wait out the long night,
despite predictions of tempera-tures
in the low 40s. Quiet rock mu-sic
drifted from portable radios
and cassette players, and the smell
of corn chips floated on the af-ternoon
breeze Two people played
backgammon, while those in the
front- of- the- h- ne group entertained
themselves with a game of Pitch
Steve Obercromb, 21, arrived
with the first group at 10 ajn
Thursday. Camping out for tickets
is nothing new to Obercromb, who
held the first position in the ticket
line for last spring's Cheap Tnck
concert He said his group chose
the Hearnes ticket window in the
hope the spot would be warmer
than the alternative location out-side
the University's Memorial
Union It gets awful cold in that
arch," Obercromb say s ' The wind
whips through there about 30 miles
an hour '"
The prospect of sitting out in the
cold all night did not seem to both-er
Shannon Graham, 18 If I
minded. I wouldn't do it," she said
with a laugh. Ms Graham, too, is
an old hand at ticket vigil sessions
She camped out for two day s to get
front- ro- w tickets to a Van Halen
concert in St Louis' Checkerdome
Wallv Lehmann, 21, said he
wouldnt get in line so early for
tickets to see any other group
Jefferson Starship is my favorite
group,' he said Intending to make
the most of his wait, Lehmann
brought a camp stove, as well as
snack foods, books and his back-gammon
set Come back a little
later we're having fried chick-en,"
he said
Although most ticket seekers
planned to stay all night, several
had broken the long wait into
shifts, sharing the burdensome
stay with friends
U. S caught
between two
arguments
Israeli campaign
ma defeat arms sale
The Baltimore Sun
WASHINGTON The administra-tion
has warned Prime Minister
Menacbem Begin that Israel's cam-paign
against massive American
military support for Saudi Arabia
could destroy US standing through-out
the Middle East
That would be the inevitable con-sequence,
senior officials say, if Con-gress
forbids the sale of 58 5 billion
XttSlgltt
in air defense equipment to the Sau-dis.
Resulting uncertainty in the re-gion,
toey argue, could leave the
whole Persian Gulf area vulnerable
to Soviet pressure
The strategic consequences of de-feat
have become a basic element of
the case the administration has
made as it mobilizes for a jarring
conflict with Congress But as lines
have been drawn over the past seve-ral
days, there is substantial evi-dence
that the Reagan forces moved
too slowly.
Already at least 50 members of the
Senate are committed tentatively
against, the sale Majorities of both
( See CONFLICTS, Page 14A)
Group receives loan
to build apartments
for the handicapped
Fiscal vear deadline cause? race
By Susan Eggermg
Missourian staff writer
Four years is a long time to wait,
but when patience yields a $ 512,000
loan, somehow the wait doesn t seem
so bad
At least that's the way Evelyn
Bosch sizes up the situation Mrs
Bosch, president of Mid- Misso- un
Barner- Fre- e Housing for the Physi-cally
Handicapped Inc , Wednesday
traveled with six other corporation
members to St Louis There they
hoped to make final plans for a grant
from the federal Department of
Housing and Urban Development be-fore
fiscal 1982 began at 12 01 a m
Thursday The group formed four
years ago and applied for its first
HUD loan in 1978
The race was on
Dreading the stroke of midnight
which would initiate President Rea-gan's
budget cuts the group
worked feverishly and successfully
to obtain the loan, which will allow
the organization to build 13 barri-er-
free apartments in Colombia.
" You never know with any federal
thing," Mrs Bosch said. ' We
weren't exactly sure until 8 30 p. m."
Their dreams for a one- sto- ry
apartment complex designed for the
handicapped might have been shat-tered
had they not completed the
transactions during fiscal 1981
It ( the loan) might not have gone
through, and even if it had, it would
have been higher interest," Mrs
Bosch said That's a lot of money "
Treasurer Pete Dohm agreed ' It
would have been more difficult in
general because it would have in-creased
the cost of it ( the housing
project), and the interest rate would
have gone up 2 percentage points "
Now, with its 40- ye- ar, 9l4 percent
loan, the group says it hopes to
break ground on Oct. 11 and com-plete
the one-- and two- bedroo- m
apartments by July 1982. Architect
Don Mitzel, 410 E Rockcreek Drive,
J will design the complex. Reinhardt
Construction Co , of Centralia will
build the apartments The apart-ments
will be rent- subsidiz- ed under
another HUD program, Dohm said
HUD officials estimated the cost of
the project would be $ 625,000 but
gave the group a $ 512 000 mortgage
Dohm said Funding from two feder-al
Community Development Block
Grants one for $ 12,500 and another
for $ 69,000 will take up some of the
slack, as will a $ 1,000 donation from
the Columbia Rotary Club When the
building is completed, a $ 5 000 gift
will come from the Boone County
Community Trust Fund
The group also will approach the
public with a fund- raisin- g campaign
to help obtain the remaining $ 20,000
to $ 30,000
After receiving some city funds,
the non- pro- fit corporation purchased
just under an acre ( 4 hectare ) at 107
N William St , across from Lions- Stephe- ns
Park.
The group then obtained
sponsorship from United Cerebral
Palsy of Missouri and filed its first
HUD loan application It was ar inch
2.5 centimeters) thick and weighed
32 pounds ( 175 kilograms), Mrs
Bosch said.
The group must be sponsored by a
" parent" group for collateral, m
case the group requesting the loan
runs into financial difficulties
The need for barner- fre- e housing
is not a new problem, but it is one
that has been long- ignore- d. Mrs
Bosch said The one- sto- ry Freedom
House" will be the first federally
funded, barner- fre- e housing com-plex
in Missouri outside of St Louis
or Kansas City However, similar
complexes are planned for
Kirksvifle and Cape Girardeau, Mo
Mrs Bosch, an officer on the exec-utive
boards of five Columbia social
service agencies, recognized years
ago the need for housing designed
for the handicapped I have a 21- year-- old
daughter with cerebral pal-sy
I knew we needed bamer- fre- e
housing '
First- cla- y All- Save- rs sales brisk
Umted Press International
Savings and loans and commercial
banks even one large brokerage firm
went all- o- ut Thursday to sell the new
All Savers certificates, leatunng every-thing
from gifts to night banking hours
with free coffee and doughnuts.
Buyer reaction was enthusiastic
with a few exceptions.
Frank Wood, president of Chesapeake
Savings and Loan in Norfolk, Va , said
he was forced to open up 10 minutes
early
" We bad people waiting in line when
we opened up this morning It's been
very brisk," Wood said. Many Virginia
S& L's reported about half the money
was new and not funds withdrawn from
another account
By mid- afterno- on, Timothy Smith, "
manager of an Albany, N Y., Savings
Bank branch, bad about 50 new applica-tions
for All Savers certificates on his
desk and still hadn't gotten around to
lunch.
' You should have been here during
lunch hour," he said. " The response
seems to be very favorable "
Smith said most applicants were m
the over- 420,00- 0 income range, and
most were taking money from six- mon- th
certificates to put into an All
Savers.
' So far, the response has not been as
we had anticipated," said Larry
Bowles, senior vice president of Gibral-tar
Savings of Texas m Houston " If
volume doesn't increase the stated aim
of the All Savers will not be accom-plished
at Gibraltar "
A Citibank branch in ew York City
posted an Uncle Sam" on the sidewalk
to pass out leaflets and a " space alien"
mime aside to promote the All Savers
-- This is both to inform people and to
create a festive atmosphere for what
we believe is a goou ueoi iui consum-ers,"
Richard Kennedy, vice president
of Citibank, said
In Buffalo, X Y , a steady rain failed
to dampen enthusiasm
' I don't think the rain will keep the
people away from beating the tax
man," said Edward Duch Jr , vice
president of Buffalo Savings Bank He
estimated the bank took in about $ 250,- 00- 0
in new deposits during the morning
alone
Georgia Federal Savings & Loan in
Atlanta said business had been brisk
at all our 54 offices ' Ray Fisher, vice
president, said most customers " are
going for the maximum amount," on
which they can earn tax free interest
Many banks were offering 24 hour
phone hotlines, Saturday office hours
and free gift promotions
Citibank and Chae Manhattan Bank,
New York's two largest commercial
banks were keeping their branches
open for extended hours and all day Sat-urday
Congress passed All Savers mainly to
help the ailing thrift industry, which
has lost billions of dollars in deposits to
high- yieldi- ng money market funds and
other investments, and to boost the
housing industry by making more mon-ey
avadable for mortgage lending
Banks and thrifts expect a flood dur-ing
the weekend, especially now that
the new rate effective Monday will be
12.14 percent, down from the current
12.61 percent rate
The one- ye- ar All Savers certificate
can be offered through Dec 1, 1332 It
pays a rate of 70 percent of the yield on
the monthly US Treasury one- ye- ar
notes The first $ 1,000 of interest earned
on the certificate $ 2,000 for a couple
is tax- fre- e
i
Fall in interest rate
may stir local action
By Brad Lehman
Missounan staff writer
All Savers certificates went on
sale Thursday, and already the
rates are about to fall.
The current 12.61 percent rate
will fall to 12 14 percent Monday
Local bankers said many inves-tors
didn't invest on Thursday to
see if the rate would increase
next week Because the rate will
be lower Monday, customers may
hav e to invest today
' The rate will change Mon-day,"
said Dave Nolke, vice pres-ident
of Commerce Bank. ' But
after 3 pjn. ( today), deposits be-come
Monday's business Three
pan. is when we have to meet the
computer deadline That's when
all deposits are being processed
as of the next day's business "
Nolke said the deadline varies
among financial institutions St
Louis Federal Savings and Loan,
for example, will sell the certifi-cates
at the old rate until noon
Saturday
The All Savers rate is 70 per-cent
of the Treasury Bill rate,
which changes monthh The date
for this month's change is Mon-day
The government announced
the new T- B- ill rate, 17 34 percent,
Thursday afternoon. The old rate
was 18 01 percent.
Although thrift institutions
Thursday were waiting for hesi- -
tant customers, some did well in
All Savers sales
Activity's been fairly brisk to-day,"
said Doug Lester, exec-utive
vice president of Boone
County Bank " There also have
been a lot of inquiries ( about the
new interest rate) '
" The response has been real
good," said Tom MendenhalL as-sistant
vice president of St Louis
Federal ' People have been in
here since we opened The maxi-mum
you can deposit is $ 15,8S0 42
( for a joint deposit), and most are
doing that I think this is a real
positive, good trend "
But at Mid- Misso- un Savings
and Loan, only about 12 custom-ers
invested in the certificates.
Branch Manager Dorothy Sapp
said. And Jerry Sinquefield, as-sistant
vice president- cashie- r at
Century State Bank, said banks
won't be able to determine the
success of the certificates even
by next week.
' We will see a shift from mon-ey
market certificates of deposit
to All Savers certificates," he
said.' It will take 30 to 60 days be-fore
we can get a feel on what
percentage will be shifted to the
All Savers certificates "
Money market investors face
interest penalties en six- mon- th
certificate deposits, Smquefield
said. Their money may not be
free until months have passed.
i
today
11 a. nx-- 5 p. m. International
Bazaar, outside Read Hall on
the University campus The
public is invited to enjoy food,
crafts and music from all over
the world
8 p. m. -- To Be Young, Gifted
and Black," autographical
play, at the Gentry Studio The-ater,
basement of Gentry Hall
on the University campus
Tickets are 75 cents at the
Fine Arts box office
8 and 18 pan. Dave Rudolph,
musician and comedian. Me-morial
Union Deck, Memorial
Union on the University cam-pus
Free and open to the pub-lic
Astronomers have reported
the discovery of an immense
I bole m distant space It's so
big, they say, that 2,0C0 galax-ies
could fit inside it If the
finding is confirmed, it would
mean scientists would have to
re- thin- k some fundamental
ideas on how matter organizes
itself on a large scale in the
universe over billions of years
See story. 14A
! Business 12A
Classified -- 10A
Comics ........ . ... . ...... 11A
fti;" i3fi ........ .. 4A I
Spcrts S- 7- A 1
Weaker .2A I
Weekend. 1-- SB I
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