The Star Press from Muncie, Indiana • Page 1

1 HE MUNCIE STAR "Where the Spirit of the Lord Is, There Is Liberty" II Cor. 3:17 VOL. MUNCIE, INDIANA, THURSDAY, JANUARY 20, 1983 1983, The Muncie Star 25 CENTS Former Cabinet Officers Warn Against Deficits By DONALD H. MAY wrote in the letter. "This we fear is a prescription for economic stagnation with no end in sight." The group also includes former Treasury Secretaries W.

Michael BIu-menthal, who served in the Carter administration; John B. Connally of the Nixon administration; C. Douglas Dillon of the Kennedy Cabinet, and Henry G. Fowler and William E. Simon of the Johnson and Ford administrations respectively.

They said the federal deficit, if unchecked, would rise to $250 billion in fiscal 1985, representing an unprecedented, sustained level of more than 6 percent of the gross national product. They proposed $175 billion in spending cuts and tax increases to reduce the deficit that year to $75 billion, or about 2 percent of the projected GNP. They would include: $60 billion in savings from "entitlement" programs, as federal benefits are called, and other non-defense programs. These would include a one-year freeze on cost-of-living raises for Social Security, veterans benefits and civil service and military retirement, and limiting the cost-of-living adjustments for these programs in the future. newspaper ads.

Peter G. Peterson, commerce secretary under President Nixon and now head of Lehman Brothers, a New York investment banking firm, said the group hopes to persuade a broad spectrum of Americans to rise above their separate special interests and support its proposals. "On this course, we could not expect either sustained economic growth or genuine price stability, and we would certainly face a decade or more of dangerously inadequate investment in productive plant, equipment, research and development and public infrastructure," the group $25 billion in defense cuts, reducing the "real" rate of growth of defense programs after adjusting for inflation from 9 percent, as proposed by the president, to 7 percent. $60 billion in increased "consumption" taxes. The group said raising individual or corporate income taxes would impede saving and investment.

Their proposed tax increases would be in sales or other taxes, perhaps moving toward "value-added" taxes. $30 billion In reduced federal interest payments on the national debt, which the group said would come automatically from lower interest rates due to the other cuts. The group said rising federal deficits, which require federal government borrowing, are eating up private savings that should go toward Investment in a better future economy. It said this borrowing keeps interest rates high, slowing recovery and leading to an overvalued dollar, which hurts U.S. exports.

Peterson said federal programs for the poor and grants to state and local governments have borne the brunt of much past budget cutting and now "simple equity and simple arithmetic require that there be a broader sharing of the burden," including benefit programs for the middle class. United Press International WASHINGTON Six former Cabinet officers from both parties, warning that soaring federal deficits will bring "stagnation with no end in sight," Wednesday proposed $175 billion in spending cuts and tax increases for 1985. The group, supported by some 500 former federal officials, businessmen, lawyers, educators and others, made the appeal in a letter to President Reagan, House Speaker Thomas O'Neill and Senate Republican leader Howard Baker. It soon will take its case to the public in a series of 1982 GNP Worst in Four Decades By DENIS G. GULINO United Press international WASHINGTON The economy wilted by 2.5 percent from October tO December, making the year's gross national product performance the B-1- 1 worst in nearly four decades, the government said Wednesday.

The Commerce Department said the 2.5 percent GNP decline in the fourth quarter snuffed out gains earlier in 1982 for there will be an upturn in the GNP. This is a year of recovery," Baldrige told reporters on Capitol Hill. He predicted unemployment now 10.8 percent is "at or near its peak" and that the upturn ahead "will be a recovery without increased inflation." White House spokesman Larry Speakes said, "We fully expect the GNP will show steady improvement in the coming year." Speakes, asked if that means administration officials are not concerned about the dip, replied, "The recession caused it." In Chicago, President Reagan said the decline in the GNP wes "no surprise." "I understand probably a large part of that is due to shrinking inventories," he said. The nation's output of goods and services fell $9.4 billion in the fourth quarter to what would be an annual rate of $1,475 trillion in 1972 inflation-adjusted dollars, the report said. The major negative influences in the fourth quarter were a record decline in inventories surplus stocks not replaced by new production and a further worsening in export sales.

On the plus side were an increase in personal spending, the single biggest component of the GNP, and an enormous surge in government price support payments to farmers for grain. an overall 1.8 per- baldrige cent drop in the GNP last year after inflation. It was the worst annual showing since the economy slowed down immediately after World War II. Before adjustment for inflation, however, the value of everything the nation produced and sold at home and abroad reached $3.06 trillion for 1982 as a whole, the first year the American economy broke the $3 trillion mark. Commerce Secretary Malcolm Baldrige said the year-end decline would not stand in the way of recovery by March, his most optimistic assessment yet.

Most private analysts said any improvement will be very weak. "I think that this quarter (January through March) will be a quarter of recovery. I think in the first half Winter Fun Jefferson St. The two seemed to have had a little trouble in doing so. (Star Photo by Kyle Evens) Nine-year-old Shelly Norman (left) and 5-year-old Ashley Chase (right) Wednesday attempted to slide down a small hill in the front yard of Ashley's house at 1209 N.

Muncie Policemen Get Some New Rules Warner Gear President Given New Assignment By G.K. HAWES The Star's City Editor The president and general manager of Muncie's Warner Gear Division has been reassigned. In a brief statement to employees on Wednes 1 ft day, corporate officials said Thomas F. Bluemle would leave his duties as Warner Gear general manager to become assistant to the president of Borg-Warner Automotive Components Group. The statement was signed by Automotive Components Group President William Blalock.

and it said Blalock information on this within the next week," he said. "I think I can say there will be additional information within the next few days." Boyle declined to speculate as to the significance of the move. "I can't tell you," he said. "If I say I don't want to speculate, it might sound like I know more than I'm saying, and I really don't." Bluemle could not be reached for comment. Neither could Blalock.

The Star learned about the announcement through employees. Some had seen the announcement. Others had heard about it. "They say they're making him assistant to the president or something like that, but what that really means is he's out the door," said one. "I can't say it came completely by surprise, but it pretty much came down like a ton of bricks." Bluemle was 46 when he became Warner Gear's president and general manager in October 1978.

He had joined Warner Gear about 18 months earlier, resigning as plant manager at Muncie's Delco Battery to become Warner Gear's vice president of manufacturing. Bluemle had been plant manager at Delco Battery for nearly six years, taking the job in (See WARNER GEAR on Page 12) temporarily would take over BLUEMLE Bluemle's duties at Warner Gear. The change, the statement said, would be "effective immediately." Warner Gear spokesman I. Dean Boyle declined to elaborate. "All I can tell you is what is in the statement," he said.

"That's all I know." Asked if the announcement came as a surprise, Boyle declined to answer. "There will be, I'm sure, some additional DSA Winner Brad Razor was presented the Muncie Jaycees' Distinguished Service Award at a banquet Wednesday night. See the story on Page 5. administration updated the grooming policy in retaliation. Harty said the policy is harassment "because they lost the suit." "They are taking it out primarily on the uniform officers," he said.

"It's my feeling that it is because Haggard is in the uniform department." "1 feel like we angered our big brother, and now he's retaliating in the only way he knows how to make it tough on us," Hathaway said. Asked if he believes the grooming rules will be enforced equally, Harty said: "No. It never was before, and it never will be." "If the administration enforced them uniformly," Hathaway said, "it would be beneficial. But it's not, so all you're going to get is bad feedback." To ensure that the grooming rules are enforced, Hayden has assigned Lt. Charles Hittson and Sgt.

Jack Finchum to the Internal Affairs Division to work with Sgt. Don Winkle, who already is assigned there. Hittson will be leaving the drug education division and Finchum will leave the narcotics division to work in internal affairs. Those men will work "directly under the supervision of the Chief of Police," reads a memo dated Jan. 18.

The memo also says: "It will be their duties to report any and all infractions and violations of departmental policies, procedures, rules and regulations by members of this department, including supervisors. Authority has been granted to relieve any officer or employee of the Muncie Police Department from duty and to order them to the Chief's office at a designated time." Asked if the updated grooming rules came as the result of the Haggard suit, Hayden said: "Oh, definitely. "I thought we'd run it uniformly," Hayden said. "I had 18 patrolmen testify against me (at Haggard's trial), and if that's what they want, that's what they'll get." Hayden said the only officers who do not have to follow the grooming policy are officers assigned to the narcotics division. They will be allowed to have longer hair because they work "undercover," Hayden said.

(See POLICEMEN on Page 12) Index By VICKI HERMANSEN Star Staff Reporter In the two days since patrolman Harold (Rick) Haggard won a suit against the Muncie Police Department, the administration has issued some new rules and updated some others. Haggard was awarded $25,000 Monday by Delaware Superior Court 2 Judge Richard A. Dailey, who ruled that the patrolman's rights had been violated when he was suspended for speaking to a reporter. The judge also ruled that Haggard had been singled out for discipline under the department's policy on facial hair. Police Chief Gene Hayden said Wednesday that the updated rules regarding grooming for all department members is "no different" from previous rules.

He also said the case won by Haggard will be appealed. Dailey said Haggard had been treated in a discriminatory fashion when he was punished for refusing to shave a goatee. Hayden said he believes Haggard was not singled out, and he said all actions on punishment or lack thereof are done "uniformly." A notice dated Jan. 18 says the personal grooming policy is an updated version of one issued Oct. 20, 1981.

That policy tells just how long an officer can wear his hair, sideburns and moustaches. Beards or other facial hair are not permitted. The rules themselves are not under criticism from the uniform officers. The officers believe, however, the rules will not be enforced equally. "Once again patrolmen in the uniform department are being used as the whipping boy due to recent court decisions," reads a notice posted on the bulletin board in the uniform division.

"If you're tired of the harassment and double standards, how about meeting together? Patrolmen comprise the biggest part of this department and continue to pay the biggest price," the notice reads. Five officers signed the bulletin board notice Wednesday. Hayden said he was informed of the notice Wednesday morning, and said he opted to leave it posted. Officers Danny Harty and Jim Hathaway said they believe the Goodall Casts His Vote for 'None of the Above' By SETH SLABAUGH Star Stall Reporter Imagine going to the polls on Election Day and having an opportunity to vote for "none of the above." in That would become a reality to voters Readers of The Star will find an eight-page January Coupon Days section in today's edition. Forty-five merchants are represented with 112 money-saving coupons.

See Pages 33-40. Purdue and Notre Dame win, but Ball State loses. Stories on Page 21. The U.S. Olympic Committee has recognized an athlete as a pro in football and as an amateur in track.

Story on Page 21. Barnet 21 Markets 28 Bridge 31 Metro 5 Classified 28-30 On Record 6 Comics 31 Sirens 12 Deaths 15 Sports 21-23 Editorials 4 Talk of Town 14 Focus 13-14 Television 26 Food 13 Theaters 26 Landers 14 Week Ahead 6 Indiana if a bill introduced Wednesday by Rep. Hurley Goodall becomes law. Goodall, a Democrat from Muncie, filed a bill to place "none of the above" under the names of candidates for each and every office, from president of the United States to township trustee. "In essence, what I'm elections, not primaries.

The proposal would require precinct election boards and county boards of canvassers to keep track of the number of votes cast for "none of the above." But regardless of the number of votes cast for "none of the above," the candidate who received the most votes would still win. "This would not negate any elections," Goodall said. What the law would do is offer voters a chance to send a message to the political parties and politicians, Goodall said. "A lot of people say the 'no shows' are a protest vote," Goodall said. "I don't know whether they're a protest or if people are just too dilatory or too apathetic to go vote.

"This would serve a purpose particularly in the minority communities where many times we find the Democratic Party taking us (blacks) for granted saying we have no place else to go and the Republican Party saying we're going to vote Democratic anyway so they have no need to be responsive." attempting to do is give people goodall an alternative other than just staying away from the polls," said Goodall. The three-term representative said his bill is no joke, but adds: "I'm probably nuts for doing it." He said he tried for a month but could not find a co-sponsor, Republican or Democrat. The proposed law would apply only to general Partly Cloudy, Cool Today partly cloudy and cool with highs in the low 30s. Mostly cloudy and not so cold tonight. Lows in the mid 20s.

Details on Page 27..