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Traverse City Record-Eagle Two Section*--28 Pages SaturUy, December 31, 1977--Traverse City, Mich. 4MM Price 20e Milliken signs bill to outlaw kidporn Record-Â£Â»Â«le Pholo by Don PfnÂ«yk Record-Eagle reporter Marilyn Wright watchei Gov. William G. Milliken Sign legislation aimed t curtailing child pornography. Milliken ilgned the bill this morning on Wright's desk in the newsroom By BILL PRITCHARD Record-Eagle staff writer TRAVERSE CITY - Sitting at a Record-Eagle reporter's desk this morning, Gov. William G. Milliken signed into law a tough bill prohibiting the use of children in pornography. The desk belonged to reporter Marilyn Wright. The governor credited her with helping to "call the attention of public officials and the public at large" to the problem of child pornography. ' For nearly a year, Wright has written stories exposing a nationwide network of pornographers who use children in films, magazines and for illicit sex in phony boys camps. The bill the governor signed today will slap convicted child pornographers with a 20 year prison sentence, a $20,000 fine or both. "The pornography issue, including the debate over local versus state standards is a complex one," Milliken said, "We have extremely strong principles involving the freedom of expression on one hand and the deep concern about the effects of pornography on society on the other." Ceremony at Record-Eagle "But there can be no doubt, no debate over the corrupting, destructive influence of pornography producers who use young people as instruments in their drive for profits," he said. "This is the beginning of what I hope is a constructive approach to the problem of porn," Milliken said. The bill, introduced by State Rep. Larry E. Burkhalter (D-Lapeer), makes it a felony to use or allow to be used a child under 18 years old "for sexual acts for commercial purposes, or who finances or participates in the production of films or sound recordings of such performances", according to a summary of the act. The legislation "provides very specific definitions and is not expected to present constitutional questions on the grounds of vagueness," a release from the governor's office stated. "The definitions are expected to provide the basis for further obscenity legislation in the next legislative session," The brief ceremony at the newspaper was one of the few legislation signing ceremonies which the governor has held outside of his Lansing office. An aide said it was the first time Milliken had signed a bill in a newspaper office. Wearing a gray suit and a tie with the blue and gold colors of the University of Michigan, Milliken wheeled Wright's chair up to a typewriter tray and put his name to the bill. He was accompanied by a small group of bodyguards and aides. Record-Eagle Publisher Donald J. Clifford and Editor John Kinney represented the newspaper along with Reporter Wright. Wright said it was an "honor and a privilege" that the governor signed the anti-porn legislation at her desk. The stories Wright uncovered which helped influence the introduction and passage of the legislation began in the winter of 1976. The first stories focused on a wealthy Detroit man, Francis D. Shelden, who is suspected of being involved in a nationwide n e t w o r k of child pornography. Shelden owns North Fox Island -- off G r a n d T r a v e r s e Bay -- w h i c h authorities believe was used for some of the illegal activity. Sheldon is now a fugitive from justice charged with criminal sexual conduct. Wright went on to detail the activities of child pornographers from coast to coast. Her s t o r i e s showed how pornographers used the cover of phony churches and fake children's camps to ply their illicit trade. The expose detailed how individuals, some them wealthy, became involved in financing the criminal business. W r i g h t ' s reporting caught the attention of publications and authorities in other states and helped touch off an intense public focus on the extensive child pornography business. The reporter is continuing to probe the pornography network. County shatters construction mark By DAVID HAYES Record-Eagle staff writer TRAVERSE CITY -- During 1977, work began on more than 1,700 construction projects with a total value of $58 million in Grand Traverse County -a $24 million increase over the record construction year of 1976. Construction began on 1,000 housing units -- 800 houses and 200 apartment or condominium units during the year. That total equals one new housing unit for every 45 county residents. The 1,700 building permits issued during the year -- approximately one project for every 26 county residents -- and t h e r e s u l t i n g b u i l d i n g p r o j e c t s , represent an approximate $1,263 expenditure for every county resident. More than half of the permits were issued to construct new houses -- the majority in East Bay. Long Lake, Acme and Garfield townships. The remainder of the permits were issued for residential and commercial additions, new commercial buildings and some small industries. T h e G r a n d T r a v e r s e C o u n t y Construction Code office, which issues building permits for 11 of the county's townships, issued a record 994 permits during 1977. That represents a 160 permit increase over 1976. But the real increase for the county is the dollar value of the new construction -- up to $23.6 million from $15.2 million, an increase of $8.4 million. The City of Traverse City, which issues its own permits, narrowly aced out Garfield Township for second place in the construction boom. Traverse City Building inspector Hugh Hyde issued 280 permits representing new construction worth $15.6 million. Garfield Township issued 272 permits this year -- a 55 permit increase over last year. The construction value this year also increased -- by more than $6 million -- to $15.5 million from $9.5 million. Green Lake Township recorded roughly $2.1 million during 1977, up dramatically from the $750,000 which was recorded in 1976. Approximately 100 new houses were constructed in the township, Supervisor Judith Lindenau said. Traverse City wasn't alone in the building boom. Leelanau County topped last year's construction total by $2.5 million, to $10.4 million from $7.9 million. Benzie County nearly doubled last year's construction totals. The Benzie County Building Department issued $5.3 million in permits for new construction this year. Last year's total was $2.7 million. The largest project this year was Munson Medical Center's expansion project, eventually expected to cost $10 million. A record $6.7 million . .. ,, permit for the majority of the project was issued in January. Three motels began large expansion projects this year, while construction started on two new motels. The Traverse City Holiday Inn completed a $1,050,000 expansion project which added 50 rooms, a second lounge and additional banquet space to the hotel. The Capri Motel spent $130,000 to add 17 rooms and the Driftwood Motel spent $225,000 to add 25 rooms. A new Day's Lodge is being constructed beside the Day's Inn on Munson Avenue in Traverse City. The $500,000 project will add 50 efficiency motel units to the complex. A 110-unit motel, also with efficiency units, is under construction in East Bay Township along the bay on U.S. 31- North. The $1.1 million project, design-' ed similarly to the Traverse City Holiday Inn, is scheduled to open this year. Construction started on six shopping centers -- two major centers and four auxiliary areas -- during the year. Permits totaling more than $2 million were issued for the Cherryland Mall along Garfield Road in Garfield Township. (Continued on Page 10) Construction progresses at the Dayi Inn on Munson Avenue in Traverse City. It's one of many building projects launched in Grand Traverse County during 1977. Record-Elf le 1*010 by Jokl L. RÂ° More than $56 million in construction was initiated in the county during the past year. Carter talks oil with shah Inside the Record-Eagle Winter storm watch tonight with possible heavy snow and a low of around 10. Windy and cold Sunday. See Page 8 for more weather Information, Â» Â· * Grand Traverse County residents will soon be able to contact city and county fire units, seek county emergency medical aid and reach the state police by calling a single phone number. Page 4. Â· * Â· The New Year brings with it a new law which should make consumers feel a little more at ease when they drive Into a car repair shop. Page 8. The St. Francis Gladiator* win thi own Christmas basketball tournanu by upending Glen Lake 88-80 Frid night. Page 11. Calendar 16 Landers Classified . Club Clips Comics . . . Cultural Calendar . Dixon . . . . Editorials . . 21-28 . ... 16 .19, 20 ...28 .18,20 . . . . 8 Â·7 Obituaries One Way Out . Outdoors Sports 11 TV Weather When You're Rradv sk- int tay .16 . 8 . 7 .17 -13 :8 8 7 TEHRAN, Iran (UPI) -- President Carter arrived today in this oil-rich nation for talks with the Shah on matters of energy, armaments, and Middle East peace. Small anti-American demonstrations broke out before he flew in from Moscow but were quickly dispersed by police. Today was devoted to meetings with Shah Mohammed Reza Pahlevi who supplies 8 percent of the U.S. supply of oil, is a heavy buyer of U.S. armaments. On Sunday Carter will meet with King Hussein of Jordan. When Carter arrived, he was greeted warmly by the shah. The two leaders drove together in a heavily guarded motorcade past an estimated 200,000 people. Veiled Moslem women, their brightly colored high-heeled shoes peeping out from their flowing robes, shouted -Jimmy! Jimmy! Jimmy!" Heavy security had been put into effect and the capital was patrolled by policemen with submachine guns. Police said students held anti- American demonstrations in front of the Agricultural Society of Iran and America, the U.S. Embassy, the American Friends of the Middle East building, where Iranian students who wish to study in the United States are advised. The worst battle broke out near the Hilton Hotel, the headquarters of the White House advance party. About 40 students waving banners and shouting anti-Carter slogans were driven off by police. The students screamed "Carter go home! We hate Americans!" and "Down with America!" The demonstrations -- and the ext r e m e l y s t r i c t police security precautions -- followed a bomb blast last Wednesday at the America-Iran Society academic center. In his remarks at the airport welcoming ceremony, Carter said that he and the shah would discuss energy and peace. Iran supplies 8 percent of all U.S. oil imports. At the OPEC meeting in Caracas, Venezuela, this month, the Shah successfully persuaded members to maintain a price freeze. Iran wants to buy 140 additional F16s, AWACs and six or eight nuclear reac- ' tors from the United States. "The Shah and I surely hope that peace will come soon in the Middle East and that as our military alliance remains unshakeable we may help to reduce the level of tension and armaments throughout the world," Carter said. An estimated 200 Poles, workers bused from their jobs for the occasion, waved small Polish and American flags and doffed their fur hats as Carter arrived at the Warsaw airport for his departure. The president told them, "I like Poland very much. Everything went well." As Carter flew to Iran speculation grew he may meet Sadat to try to heal the rift caused by his comment that the United States did not support a Palestinian state on the West Bank of the Jordan. V ellCU IVAOSICJII WUI1ICII, Lllcil hfllglltlj *u*, HVM*-~...-- ~-- Â· -Faster rise in food prices seen in 9 78 ramp from a shrinking money su Top local storiei of 1977 are highlighted on Page 15. No newspaper on Monday In observance of the New Year Holiday weekend, the Record-Eagle will not DUbUsh Monday, Jan. 2. All business offices will be closed The newspaper's business offices will reopen Tuesday morning at 8. The staff of the Record- Eagle wishes all a happy and safe New Year. WASHINGTON (UPI) - Food prices Â·at grocery stores will probably begin rising faster in the coming year, but employment and factory production won't keep pace, and the overall result will be growing pressure for President Carter's promised tax cut. These conclusions could be drawn from economic reports the government issued Friday. " The Agriculture Department saia farm prices rose 1 percent in December for the third consecutive month. Prices for hogs, cattle and corn led the increase. Farm prices are quickly passed along the production line to consumers. Tax cut pressure to mount Lower farm prices last spring and summer helped keep inflation under control. In another development, the Commerce Department said its barometer of future economic activity fell in November after four months of modest gains. This suggests unemployment and production are unlikely to change early next year. The drop in the Index of Leading Economic Indicators is certain to add pressure for early congressional enactment of Carter's tax cut package designed to put about $300 in the pocket of families with moderate incomes. The 0.2 percent decline for November was not significant in itself, department analysts said. The index would have to drop for at least two more months before raising any concern among policymakers about a potential for weakness in the economy. The index measures 12 sectors of the economy. Of the 10 available for November, five declined. The most important negative factor came from a shrinking money supply, which came under the direct supervision of Federal Reserve chairman Arthur Burns. Carter announced Wednesday Burns would not be reappointed when his term expires Jan. 31. White House aides said Carter had several reasons for making the change, including concern that Burns might favor monetary policy that would counteract the impact of any tax reductions. The decline in November was the first since consecutive 0.2 percent dips in May and June. The index rose from 0.1 to 1.8 percent between July and October.