Partly cloudy High low 90s
THE UNIVERSITY DAILY
KANSAN
The University of Kansas
Vol. 88, No. 165
Thursday July 13,1978
Lawrence, Kansas
Prof foresees possibility of recession
Charles Krider
Staff Writer
By TAMMY TIERNEY
In agreement with economists both in and out of the government, a KU professor yesterday predicted the possibility of an economic recession next month.
Charles Krider, associate professor of business, yesterday said that if rising inflation, due in part to higher food prices and a declining dollar, continued in the 6 to 7 percent range, there was a good possibility of a mild recession.
"A recession is defined as a decline in the rate of economic growth," Krider said. "If inflation continues at its current stable growth rate will not be possible."
"IT MAY TAKE a recession of several years in order to beat back current inflationary trends."
The Carter administration Monday predicted a 7.2 percent increase in consumer prices for 1978. The rate of inflation was 4.3 percent of five months of this year was 10.2 percent.
The administration predicted a 6.5 percent increase for 1979.
The 7.2 percent prediction is the highest increase in four years.
Krider said the Carter administration was optimistic in its hope that the rate of inflation would drop enough in the next year, although an average 7.2 percent for the entire year.
"The consumer price index is the prices of all the goods bought by an average family in one year," he said. "This means that if you bought the same goods this year as an average family in another year, you experience a 7.2 percent increase in price."
He explained the consumer price index and the effects of higher food prices along with the decline in the value of the dollar on the index.
"Food prices have been predicted to rise as much as 10 percent this year. An increase of that much brings the entire price index up.
"THE DECLINE in the value of the dollar reflects, in large part, the higher
rate of inflation in the United States than in other countries. Therefore the dollar falls in value in comparison, say, to the Japanese ven."
Krider went on to outline other reasons underlying the rising rate of inflation.
"In an effort to decrease unemployment and stimulate the economy, the federal government has adopted the policy of increasing the money supply. The current rate of increase in the money supply for the past three months is 12 percent, 6 percent over what was set as the target for growth in 1978. And as long as that continues, inflation will increase more slowly, and therefore increase the money supply at such a rate without inflation.
"the policy has had the favorable result of lowering unemployment, but the unfavorable result of higher inflation. However, in the short run you can't expect to have lower unemployment without inflation."
Krider said there might be a problem in holding down wages and prices.
"The Carter administration has asked for a voluntary hold on wages and prices," he said. "They want to hold wage increases to less than the average of the past two years, but labor has not gone along."
“AND, AS LABOR wages rise, the cost of business rises, and as the cost of business rises, inflation rises. The cure for the problem is either to use wage control prices, that is not successful, or to allow unions which unions that inflation will not increase.”
Krider said that if increases in the money supply by the Federal Reserve were cut to hold back inflation, the resultion recession would not be harsh.
"I don't think it should be a severe recession," he said, "just a gradual decrease in the rate of increase in the economy in a mild downturn in the economy."
Building inspector enforces code
By NANCY FLEEKER
Staff Writer
People faced with leaky plumbing or faulty wiring in their rented housing can seek help with their complaints through the office of the city building inspector.
Kempton Lindquist, city building inspector, said that usually he inspected the buildings.
Most complaints come from tenants about their landlords, he said. Complaints must be in writing and state the problem, the landlord and the tenant. Another complaint is the building inspector takes official action.
He said it was rare that anyone filed a complaint concerning premises that were unoccupied.
"IF *SOMEONE* owns and lives in their house in conditions that don't bother another party, I figure it's the responsibility of the owner," he said.
He said that he had bad complaints filed about one residence, owned by Bent Curitt at 838 New York St., by neighbors and the fire department but that it was an isolated case.
Curit's house burned last week and had indicted him for vacated and turned the case over. The prosecutor said he
He said it was the only time he had ordered premises vacated since he began his business.
Lindquist has the authority to order property owners to make any repairs mandated by the Lawrence code for minimum structure compliance.
The code specifies compliance standards for heating, ventilation, windows and doors, lighting, plumbing, wiring and the general structure of the building.
ALTHOUGH LINDQUIST said that the majority of complaints were legitimate, he said some repairs were not absolutely warranted, although they were the landlord's responsibility.
"Sometimes people complain about things that are not in the code," he said.
One problem in enforcement is that some apartments were built before the code was in effect and they therefore have never been inspected.
As an example, he said, insulation standards are not specified as long as the heat is present.
The city does not make apartments comply with codes that were not in effect when the building was constructed unless a complaint is filed about the building.
"It would be an impossible enforcement
laith with the staff we have now," Laudus
said.
Lindquist is the only one who investigates complaints.
Inspector Glea shangnessy, chief building inspection for Lawrence, said that the idea of enforcing the code in older buildings had been discussed and studied by building
inspector officials but that no decision had been made.
It would take several months and more staff members to do a door-to-indoor inspection.
ALSO, HOUSES that are converted to
residential buildings are not inspected unless
a complaint is in force.
haughtness said there was no inspection because there was no way of knowing when the ball came through.
Another problem of building code enforcement arises when a deficiency is not immediately hazardous to the tenant's property and the landlord refuses to make repairs.
But there is no law that makes an inspection mandatory when a house is constructed.
"Technically they're supposed to come down and get a permit," he said.
the only real effective penalty is vacating the place, "Shaugnessy said."
The nature of the local code is such that
When a building code violation occurs, a landlord is given a written notice of repairs that need to be made and a two-week period to make them.
"At times there will be minor problems that I are reluctant to vacate the premises
If Lindquist decides that the repairs are necessary, the landlord has the option of making the repairs or having Lindquist issue an order to have the premises vacated.
However, he said that in most cases the landlord was aware that Lindquist had the authority to order the building vacated and repairs were made without further action.
IF A LANDLORD does not make the repairs, a hearing is set up by Lindquist.
Lindquist said he would not have the premises vacated for such problems as a lawsuited claim.
Geneva (AP)—President Jimmy Carter accused the Soviet Union yesterday of violating the 1975 Helsinki human rights agreement in the trials of Anatoliy Shcharansky, Alexander Ginzburg and other prominent Soviet dissidents.
Arms talks turn to human rights
Carter made the accusation in a message to Soviet President Leonid B. Brezhnev, Cyrus R. Vance, secretary of state, delivered the message to Andrei Gromyko, the Soviet foreign minister, in a private meeting after day-long strategic arms talks.
Carter's message charged Soviet authorities with disregard for due process in the trials of Shehansky and Ginzburg.
A U.S. spokesman, Hodding Carter, said the administration was not hiding its displeasure about the trials to an effort to complete a hitching process.
The treaty completion is the purpose of the Vance-Gromky talks. ONE POSSIBLE course of action being considered is blocking the shipment of oil drilling equipment from U.S. companies to the Soviet Union. The U.S. government has sanctions of that sort could have a major impact on Soviet behavior.
Shcharamny, charged with espionage and treason, is on trial for his life in Moscow. Ginzburg is being tried for anti-Soviet agitation against the Russian government.
The controversy has cast a shadow over Vance's talks with Gromyko.
The SALT II talks opened without mention of the Soviet dissidents' trial.
Gromyko was clearly irritated when asked whether the dissident trials were impeding the progress of the SALT negotiations. He declined to reply beyond saying, "Trials, what trials? I do not wish to tell you the subject. Do you understand me correctly?"
VANCE TRIED to play down the human rights issue.
Both men said they were determined to make some progress on controlling U.S. and Soviet long-range bombers and intercontinental bombs.
"The underlying economic problem is the very high adverse trade balance." he said.
During the afternoon session, Gromyko gave no indication about what he thought of the proposals or about how the talks were.
ADMINISTRATIVE OFFICIALS had said previously that Carter probably would be criticized at the summit for not having won the peacekeeping effort, but reducing U.S. imports of oil. Other countries oie imports as the chief cause of the world trade imbalance and the decline in exports.
Until recently, Carter took the same view. So did W. Michael Bianenthal, secretary of the treasury, who said in a speech June 30 that the Senate took gravely irresponsible action in voting to prevent Carter from enacting taxes on imported oil to discourage imports.
Carter said at a press conference Jan. 12, "It's clear that our heavy dependence on imported oil is a main part of our trade problem and that our failure to adopt a comprehensive energy program has badly impacted us in our ability to deal with that problem."
A spokesman for Vance said Vance would wait until later in the talks to hein up the subject of the dissidents' trials.
Vance carefully avoided even an interim assessment of the talks, which continue today.
Vance presented Gromko with new U.S. proposals to limit missile systems. Gromkoky called a recess after asking Vance a few preliminary questions about the U.S. plan. It was thought that Gromkoy may have consulted with the Kremlin during the four-hour
Carter shifts U.S. trade strategy
Mayor's threat concerns police
In a speech April 11, Carter said, "We simply must have meaningful energy legislation without further delay. Our economy depends on it, and our economy dermits it."
"The commission seems to be more concerned with how they are going to run the city on a 10 percent force than getting the staff trained."
Vance's spokeman said, however, that Vance would emphasize to Gromyko the importance of dealing fairly not only with Shekaransky and
VANCE HAS SAID repeatedly that the human rights issue must not interfere with the strategic arms limitation talks. A senior U.S. official said objections within the Carter administration to Vance's claims were dismissed because the arms limitation talks could not be delayed.
The U.S. plan would restrict the missile mfcifications the Soviets could make during the life of the treaty, which would run until 1985.
Carter criticized both Japan and Germany for exporting large quantities of goods to the United States without accepting U.S. exports.
In fact, Carter said, oil imports have decreased.
"It was touched on," he said at the end of the day's deliberations.
The statement marked a significant shift in U.S. strategy on the eve of Carter's departure for an economic summit conference in Germany.
"It's aggravating to us that they worry more about what they are going to do to us if we strike instead of getting the matter taken care of."
According to one policeman, Mark Brothers, there has not been much discussion by the police yet because the police think the commission meeting was inconclusive and showed little concern for them.
The inflation clause, added by the city commissioners in their meeting Tuesday night, requires that negotiations on the two-year wage and benefit package be reopened if the inflation rate exceeds 9 percent between April 1, 1978, and April 1, 1979.
The Lawrence city police said yesterday that they were pleased that the City Commission agreed to add an inflation-linked clause to their proposed contract but that they were concerned over Mayor Don Rioms' threat of disciplinary action in case of a strike.
CARTER SAID then that if Congress did act soon, he would take administrative duties.
GARY SAMPSON, president of the local policemen's union, said he was pleased that the commission approved the inflation agreement.
"There are a number of people, both police and firefighters, who are very concerned with Rings' lack of concern." Brothers said.
But in the late-night shift in strategy, Carter said that the United States already had the capability to take the lead.
The plan would give the United States the right to develop the MX, a mobile missile system, and to build thousands of new silos to make the current arsenal of Minuteman missiles less vulnerable by shifting them periodically to different locations.
Sampson said there was a possibility of a strike by the police and firefighters as a last resort.
"If you had asked me if we would strike two weeks ago I would have said no, but now that they've said they are going to give us 4 percent across-the-board increase and everyone else a 6 percent increase like they are being treated like second class citizens," he said.
Delayed work begins on playing fields
The work began after a 13-month delay that caused Mike Harper, student body president, to criticize KU Facilities Operations for not prioritizing priority over the work at the playing fields.
In spring 1979 the Student Senate allocated $79,850 to have the seven playing fields regraded, sprinkler systems installed and the fields seeded with grass.
Earthmovers began grading the playing fields at 23rd and Iowa streets Tuesday.
Commissioners said they would issue a statement outlining their position within the next few days.
Sampson said many of the men were ready to strike.
THE FIELDS are used by KU students for sports activities. Complaints that the fields were dotted with dangerous potholes caused the school to reconsider the construction work to improve them.
Green said that his employees had not encountered any serious problems with the software.
Last month Harper said that the work probably would be postponed for another year because of delays by administrators in beginning the construction.
Employees of the B.A. Green Construction Co. Inc., 1207 Iowa St., beginning staking out the site July 6, Robert J. Green, president of the company, said yesterday.
However, Keith Lawton, director of facilities planning, said the fields would be seeded in the fall after Green Construction Co. had fulfilled its contract.
Harper also had criticized administrators for not keeping the Student Senate informed of progress on the playing fields' improvements.
HARPER SAID earlier he had been told by University administrators that the work delays had resulted when seeding could not be started until late in the season for the grass to grow.
Green said the grading and sprinkler system installation would be completed in time.
After the sprinkler systems are installed and the fields regladed, Facilities Operations employees will begin the seeding of grass.
He cited recent Department of Commerce statistics showing that imports went down by one million barrels a day in the first five months of this year.
Carter, accompanied by his wife,
Toalymm, scheduled arrive in Bonn at
3:45 p.m.
The economic summit will be held Sunday and Monday in Bonn. It will be preceded tomorrow and Saturday by Carter's two-day official state visit to Germany.
After welcoming ceremonies in Bonn tomorrow, Carter will hold lengthy discussions with German Chancellor Helmut Schmidt. U.S. officials say the talks
Carter will return to Washington Monday night. There are no plans to visit any other country on the trip to Germany, which will be Carter's first since being elected president. He visited there once in 1973 while governor of Georgia.
will include East-West relations and the SALT disarmament talks, the Middle East, Africa, NATO and the economic relations between the two countries.
RELATIONS BETWEEN Schmidt and Carter are said to have improved after what started out as a generally cool attitude supported former President Gerald Ford.
There are important differences in economic policies between the two industrial powers, and these are expected to come up in the discussions between Carter and Schmidt and also at the economic summit that will follow.
Germany has been unhappy about what it thinks is a failure by the United States to adequately support the value of the dollar, which has declined more than 20 percent in value against the German mark in the past year.
Chorus line
Staff Photo by SUZANNE BURDICK
One member of the Dance Pompon camp leads a dance lineup while practicing her routine. About 180 junior high school girls are in Lawrence this week for the camp.