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September 14, 1967 - Image 3

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Publication:
The Michigan Daily, 1967-09-14

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THURSDAY, SEPTEMBER 14, 1.967

THE MICHIGAN DAILY

THURSDAY, SEPTEMBER 14, 1967 THE MICHIGAN DAILY

Mortgage

Firms

to

Issue

China, India
Clash'Near
Tibet Border
Breaks 12 Hour Lull;
IndtiAL '.nac .Fi

$1 Billion in Slum Loans

WASHINGTON (P)-The life in-
surance industry promised Presi-
dent Johnson yesterday it will in-
vest $1 billion of mortgage money
i In big city slums normally shunned
by conservative lenders.
Johnson got the pledge from in-
dustry leaders at a White House
meeting and praised them for
making what he termed "a historic
contribution to your country."
Since the industry makes about
$16 billion of investments each
year, the diversion of $1 billion
into slum projects represents a
significant commitment.
So long as the money lasts, the
industry program is expected to
give a marked boost to efforts to
improve slum housing.

The $1 billion is a one-shot com-
mitment, however. The industry is
taking a wait-and-see attitude to-
ward the possibility of replenish-
ing the kitty when the initial $1
billion is gone.
Insurance companies are making
a financial sacrifice to launch the
program, although their loans will
be insured by the Federal Housing
Administration. While they expect
to make a profit on the loans, they
will receive lower interest rate in
some cases than they could collect
if they invested the money in
other ways.
Johnson, enthusiastic abou the
program, told insurance execu-
tives: "I hope we can start to
announce the first projects under

this plan-not within months or
weeks, but within a few days."
Nearly 350 insurance companies
are participating in the program,
each contributing in proportion
to its assets. The largest contri-
butions-about $200 million each-
will be made by the Metropolitan
Life Insurance Co. and the Pru-
dential Insurance Co. of America.
The industry move had been a
closely guarded secret prior to the
White House announcement.
Although the federal govern-
ment has a number of programs
to insure mortgage loans in slum
sections, little private money has
been available for such loans be-
cause of reduced risk and higher
interest rates in other areas.

MilitaryEscalation in Vietnam
Creates 1Milion Civilian Jobs
WASHINGTON P-The esca- and federal manpower policies - nam buildup created no gen
lation of the Vietnam war created would cushion a drop in war work labor shortages, "although t
more than one million United if the conflict ended, Oliver said porary problems did exist in s
States jobs in the past two years, in the report published in the cases."
the Labor Department said yester- Monthly Labor Review. Rutzick said defense wor
day in the first such comprehen- The report said civilian jobs in are more skilled than U.S. wor
sive report since the war began. defense work rose from about 3 as a whole and "a contin
The sharp rise in employment million to 4.1 million the past two climb in demand could cr
due to the military buildup years, with sharpest increases in shortages of considerable ma
amounted to some 23 per cent of the weapons, aircraft and com- tude among these workers
the total increase of more than munications equipment industries. require both special aptitudes
four million jobs in the United During the same period, Oliver lengthy training."
States economy since 1965, the said, the number of military per- Total employment in the ma
report said. sonnel rose from 2.7 million to facture of weapons and amm
A further expansion of war 3.4 million. tion for the war increased ne
work could create shortage of Thus, the total of civilians and 100,000, or 50 per cent, in the1
skilled workers of "considerable military personnel whose jobs two years, Oliver's report said
magnitude," said, a companion stem from the Vietnam war and
report. other defense commitments totals " ,
Defense work now accounts for about 7.5 million Americans - TV F g t
5.2 per cent of the nation's total nearly 10 per cent of the total
civilian employment, up from 3.9 labor force. y- *J1
per cent two years ago. In a companion report, the bu- D isp utes C
But "this should not be inter- reau's mobilization expert, Max A.
preted to mean that one million Rutzick, said about 18 per cent
jobs would be lost if the conflict of all the nation's engineers are RICHMOND, Va. (ip) -
in Vietnam were to end," s'aid in defense work and some 22 per broadcasting industry yeste
Richard P. Oliver of the Bureau cent of electrical and electronic asked a federal appeals cour
of Labor Statistics. technicians. War work also takes shelve an order of the Fed
A.switch of workers to produc- up 14 per cent of aft draftsmen, Communications Commission
tion of civilian goods, the timing he said. quiring the broadcasters and
of cuts in military expenditures Oliver said the two-year Viet- bacco interests to supply time
aPntismkinv annnouncements_

Creation of the fund grew out
of discussions between Secretary
of Housing Robert C. Weaver and
Gilbert Fitzhugh, chairman of Me-
tropolitan Life and head of a
newly created life insurance com-
mittee on urban problems.
"This is not an iffy program,"
Fitzhugh told reporters at the
White House. "We've got the bil-
lion dollars."
Fitzhugh also said he knows!
the program is going to work but,
when asked if the industry would
commit more funds once the ini-
tial $1 billion is gone, he said,
"we'd like to see what happens."
Rent Supplements
He specifically expressed hope
that the industry effort would en-
courage rent supplement projects.
And he said some of the loans also
will go for rehabilitation of exist-
ing structures, for'loans toindivi-
dual home purchasers and for pro-
jects to be initiated as part of the
administration's model cities pro-
gram.
When asked how long it would
take to commit the $1 billion,
Fitzhugh said it would take "some
months." Here is how he explained
the program to Johnson:
Divert $1 Billion
"We shall divert from the nor-
mal stream of our investments $1
billion for investment in the city
core areas to improve housing con-
ditions and to finance job-creating
enterprises .
"This $1 billion capital is avail-
able as quickly as it can be used
for projects which would not or-
dinarily have been financed under
normal business practices because
of their location or risk."

i
.

Suggestion Ignored
NEW DELHI, India (Ap)-Ig-
noring an Indian request for a
cease-fire, Communist Chinese
troops opened fire again yesterday
on the border between Tibet and
Sikkim and India's forces suf-
fered more casualties, the Defense
Ministry reported. It was the third
day of fighting.
The spokesman said a 12-hour
lull at Nathu Pass on the Hima-
layan border was broken early in
the day when Chinese and Indian
patrols clashed on the Sikkimese
side of the border.
This was followed by a Chinese
barrage of mortar and artillery
fire that continued for three hours,
the spokesman added. Firing then
continued intermittently through-
out the day.
20 Indians Dead
While the spokesman gave no
casualty figures, government sour-
ces indicated the Indian death
toll since fighting broke out Mon-
day now is 20. The Chinese claim-
ed 36 of their border guards were
killed or wounded in the first
two days of fighting.
In a note to the Communist
Chinese Embassy in New Delhi
Tuesday, India suggested a cease-
fire, but a Foreign Ministry
spokesman said the Chinese have
not replied.
India Defends Sikkim
The 14,000-foot Nathu Pass lies
about 20 miles from Gangtok; cap-
ital of Sikkim. A tiny country with1
an armed force of 300 palace
guards, Sikkim depends upon In-1
dia for its defense. R. N. Haldipur,1
chief administrative officer in
Sikkim, said in Gangtok that the
country's civil defense organiza-
tion was mobilized yesterday.
India and China accuse each
other of provoking the fighting,f
the worst since Communist Chi-I
nese soldiers invaded India's
mountainous frontiers in 1962 in a
dispute over boundaries.c

-Associated Press
CONFER ON URBAN PROBLEMS
President Johnson met yesterday with New York Gov. Nelson Rockefeller, right, and Sen. Everett
Dirksen, R-Ill., center, to discuss urban problem in the White House's Cabinet Room. Seated in the
rear center is Roy Wilkins, executive secretary of the National Association for the Advancement
of Colored People.
SALINE STRIKE ENDS:
Detroit, New York Teachers
S Hold Out for Salary Hikes

neral
em-
ome
kers
kers
nued
eate
gni-
who
and
anu-
uni-
arly
past
d.

By The Associated Press
A week-long teachers strike in
Broward County, Fla., ended yes-
terday, and optimistic notes were
sounded in negotiations to settle
teacher walkouts that have crip-
pled the giant New York and De-
troit school systems.
But in Houston, Tex., Providence,
R.I., and 18 Michigan counties,
school disputes dragged on with
no end in sight.
And in New York, the teach-
ers' union, while talking hope-
fully of negotiations, continued to
defy the courts.
Working against the ultimatum
of a court injunction to reopen

schools, Broward County teachers
and school board officials accepted
a compromise salary offer that
would boost starting pay to $5600.
The teachers had asked $5650 and
turned down a school board offer
of $5.508.
In Detroit, negotiators for the
city's 11,000 striking teachers and1
the Board of Education were look-
ing to a two-year contract as a
possible solution to the dispute
that has kept 300,000 youngsters
out of classes since last Wednes-
day.
But Mary Ellen Riordan, presi-
dent of the Detroit Federation of
Teachers, warned: "Any two-year

.FCC Ruling,-
igarette Issue
The mission's ruling is inadequate be-
rday cause it does not require that "sub-
t to tantially equal amounts of time"
deral be provided for views that offset
re- the commercials.
to- Station WTRF-TV of Wheeling,
for W. Va., joined the broadcasters
association in the n ana el which

World News Roundup

Milwaukee Whites Demandr
Achishp Censr GOPP

t
t
i
1

MILWAUKEE, Wis. (P) -- The
Roman . Catholic Archbishop of
Milwaukee, asked by white dem-
onstrators to silence the priest
who has guided open housing
demonstrations for 16 consecutive
days in the city, declared yester-
day that "as Christians we favor
the same just cause."
About 650 young white persons
marched from the South Side to
archdiocesan headquarters Tues-
day night to demand that the
church silence or otherwise dis-
cipline Father James E. Groppi,
white adviser to the militant
Milwaukee Youth Council of the
NAACP.
'Sidetracked by Hate'
The Most Rev. William E. Cou-
sins, spiritual leader of 700,000
Roman Catholics, said in an un-
precedented editorial in the week-
ly Catholic Herald Citizen that
"many persons are being side-
tracked into a hate campaign
against one man while the real
problems of Milwaukee Negroes
are going unsolved."
The archbishop's editorial, first
such statement to be directed to
Catholics in the newspaper's 97-
year history, was prepared before
the march to his residence. But
copies of his views were distri-
buted to newsmen in the form of
a statement yesterday.
"Do I agree with everything
that Father Groppi has said and
done?" the prelate wrote. "I cer-
tainly do not."

But, he added, "We are being
diverted by emotion and mob psy-
chology into fighting a straw
figure while the real enemy goes
unscathed."
Attacks on Father Groppi, the
archbishop continued, are "being
aided and abetted by forces that
are failing in their own responsi-
bilities by 'passing the buck.' "
Pressures Unbelievable
The archbishop said that pres-
sures brought on him to discipline
the controversial priest are "be-
yond belief."
"The church is being split into
factions," he said, addink that
some Catholics have "gone so far
as to leave the church.
"Others have withdrawn or
threatened to withdraw financial
support from the charity develop-
ment campaign, from local par-
ishes, indeed from all church
causes."

i
f
t
4

U b1II&Ig S iiulcl 1L. abVl ~l I ie Yjpud1 Wlll
The National Association of said the FCC ruling violated their
Broadcasters and a West Virginia constitutional rights under the
Television station made the re- First and Fifth amendments.
quest to the 4th United States Cir- 'Arbitrary Decision'
cuit Court pending a judicial re- The petition called the FCC
view of the FCC order. It asked ruling "arbitrary, capricious' 'and
the court to make such a review, said it was an "unjust, unreason-
Equal Time able and discriminatory" action
Court action was asked in the taken without observance of the
wake of the FCC's refusal Friday procedures required by law.
to reconsider its 6 to 0 decision The petition also said the FCC's
that air time-free if necessary- decision that cigarette advertising
should be made available for anti- constituted the expression of a
smoking announcements to bal- viewpoint on a controversial issue
ance the cigarette commercials. of public importance was made in
The FCC ruling was an exten- the absence of any proper record
sion of its "fairness doctrine" on and was without foundation in
controversial issues. fact.
The FCC declined to comment Commissioner Lee Loevinger
on the suit but an official said joined the unanimous majority of
"I'm not surprised, because a great the FCC on the order but said he
many people will probably go to concurred with reluctance because
court on this issue." while the result "seems to me to
Fairness Doctrine be socially and morally right" he
This is the second court action had doubts about its legality.

By The Associated Press
VATICAN CITY-Pope Paul VI,
who will be 70 years old in two
weeks, may undergo surgery to
correct what a Vatican informant
described yesterday as an enlarged
prostrate gland. This ailment is
not unusual for a man of his age.
The Pope's personal physician
and two of Italy's most famous
doctors raised the possibility of an
operation after an examination
yesterday.-
They said the Pope had "im-
proved notably" from an inflam-
mation in the urinary system de-
scribed as acute cystopyelitis and
that their present treatment, pre-
sumably doses of antibiotics,
would be continued.
But they said they were "re-
serving the possibility of modify-
ing the treatment with surgery to
achieve the complete and defini-
tive cure of the patient."

PARIS - President Charles de
Gaulle told his Cabinet yesterday
he is satisfied with the results of
his visit to Poland but diplomatic
sources here said the trip was a
setback for the French leader's
European policy. ,
The sources described De Gaulle
as privately disappointed with the
trip but still convinced that he is
on the right path in trying to re-
lax European tensions by seeking
to loosen rival East-West blocs.
A government spokesman said
De Gaulle reported to the French
ministers that he had hoped dur-
ing the week he spent in Poland
starting Sept. 6 to renew the
friendship between that Commun-
ist country and France. De Gaulle
was quoted as saying the visit had
"answered all the desires France
had formulated."
ALEXANDRIA, Va. - Black
Power advocate H. Rap Brown

was jailed yesterday as his attor-
neys temporarily blocked his ex-
tradition to Maryland but failed
in two bids to keep him free on
bond.
Brown was whisked by auto to
'the Richmond city jail, 100 miles
south of Alexandria, by state
troopers in what his attorney,
Philip J. Hirschkop, called a
"legal kidnapping."
Hirschkop said he had been
assured by Alexandria authorities
Brown would be held at the city
jail here but then was told after
the switch that officials there felt
their facilities and personnel are
inadequate for the task.
The transfer to Richmond came
after Hirschkop and William M.
Kunstler, a New York lawyer also
representing Brown, won at least
a 20-day delay in Brown's extra-
dition to Cambridge, Md., where
he faces two felony charges grow-
ing out of a July 24 riot.

contract would have to be fair to
both sides."
Observers believed a two-year
contract wouldgive the school
board time to keep its promises
to voters for new classrooms, and
grant teachers a pay hike in two
steps.
In Michigan, teachers in three
school districts were working un-
der court injunction. In Flint's
Beecher district, where a similar
order was being sought, 220 teach-
ers threatened to resign en masse.
The Beecher school board, which
had planned to seek an injunction,
ordered any action withheld until
today.
Teachers in 18 Michigan school
districts remained on strike. In
the Saline area school district out-
side Ann Arbor, agreement was
reached yesterday and schools or-
dered reopened tomorrow for, 2300
youngsters out of class since last
Thursday. Teachers received an-
nual raises ranging from $600 to
$900.,
In New York, behind the scenes
negotiations were reported under
way to end a three-day walkout
that has disrupted classes for the
city's 1.1 million public school
youngsters.
A State Supreme Court justice,
after a vain effort ,at peacemak-
ing, issued a temporary injunc-
tion prohibiting a continuation of
the strike. The union ignored an-
other antistrike order when it
launched the walkout Monday-
and a union leader said this one
would be defied also.

in recent days in connection with
the FCC's extension of its fairness
doctrine to cigarette advertising.
John F. Banzhaf III of New
York City, whose complaint
against WCBS-TV, New York
City, began the controversy, filed
a suit in which he said the com-

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"BREAKING IN BURSLEY"
Band Concert 8 p.m.
Music School Lawn
Welcoming Ceremony following concert at Bursley
STREET DANCE 9:30p.m.
at Bursley . . . Saturday, Sept. 16

ASHOK TALAR-playing the guitar and singing
Indian Classical and Folk Music
FRIDAY, SEPT. 15
The John Miller Jazz Trio
Three from the U. of M. Band

Before the Theater

SATURDAY, SEPT. 16
The Big Sandy Boys
The Best BLUEGRASS in Michigan

Dinner or Snack

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CANTERBURY HOUSE

FRI., SAT., SUN.
Se pt. 15, 16, 17
8:00 P.
with the
WEIRD SISTERS
Bert Hornback

Interested in speaking with fellow students?

1) about dorm life
2) about rules and regulations
3) about multiversity education

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