Wednesday, September 18, 1968
THE MICHIGAN DAILY
Page Three
White House criticizes New effort
j m
Chrysler price rise
By The Associated Press
A Chrysler Corporation an-
nouncement of a priee increase on
its 1969 m o d e l s was promptly
criticized by White House econo-
'mists as "a severe setback to the
cause of price stability."
President Johnson condemned
the price boost yesterday, saying
it would take $750 million from
pockets of American families buy-
ing new cars if it spreads through-
out the industry.
"This," Johnson said in a state-
ment, "is an onerous and unfair
burden on the consumer.
"The Cabinet Committee on
Price Stability hag informed me
that there is absolutely no excuse
for the, Chrysler action and that
Salazar stl
critcally ill;.
council held
LISBON {/')-Prime Minister
Antonio de Oliveira Salazar clung
precalriously to life yesterday as
Portugal's Council of State mnet in
emergency session.
The 15-member body, from
which President Americo 'Thomaz
must draw advice to name a suc-
cessor should Salazar die or be-
come incapacitated, conferred for
twThere was no communique after
I' the meetipg.
The 79-year-old Salazar, Eu-
rope's most durable strong man,
was reported still in a coma but
had rallied slightly from the
crippling stroke that brought him
close to death Monday.
Aftter remaining silent Lisbon's
controlled newspaper and the na-
tional radio informed the people
of his condition.
Giant,
fPoster,
from any Photo
this p r i c e increase should not
stand."
* Johnson said the Chrysler ac-
tion represents a sharp blow to:
the national battle against eco-
nomic inflation.
He called on car. makers to rec-
ognize the public interest and "ex-
ercise restraint and responsibilityt
at this critical hour" in the bat-'
tle against inflation.
Chrysler announced Monday it
is raising prices on new modelsi
an average of $89 a- car, or 2.9 per7
cent. Johnson called this exces-
sive, as did Arthur M- Okun,
chairman of his price stability
committee.
OKUN STATEMENT
In its statement, issued by com-
mittee chairman Okun, the Coun-
cil of Economic Advisers said, "We1
urgently request the other auto-
mobile manufacturers to head off
this -d a n g e r o u s inflationary
threat."
F o r d, General Motors andt
American Motors are expected to
announce n e w prices for 1969
models within the next two weeks.
Chrysler cited increased labor1
and material costs as key reasonsz
for the price boosts on the new
cars which go on sale tomorrow.
Prices as released by Chrysler]
for the 1969 models did not in-
clude the seven per cent federalI
excise tax, dealer charges fort
handling and preparingnew cars
for customers, shipping charges1
and state and local taxes.
AP ESTIMATES{
An Associated Press computa-t
tion put the average pr i c e ofc
Chrysler's 172 ,different 1969 mo-
dels at $2,917.44, an increase df
$128.11, or 4.4 per cent over the
average price of the different 1601
1968dmodels which could be com-
pared, to the 1969's.
In an apparent attempt to meet
government criticism ahead of
time, John J. Riccardo, Chrysler's
group vice president for U.S. and 1
Canadian automotive, includedt
the following statement in his
p r i c e increase announcement
Monday:t
"The goverriment's own figures1
from the bureau of Labor statist-
ics for July 1968, show that newt
car prices have declined by 17.9
per cent in relation to all itemst
included in the consumer pricef
index, since the 1957-59 base per-1
iod. These same figures also show9
that this is the hest record on re-r
tail prices established by any ma-
jor group of consumer products in,
the past 10 years." t
to end N.Y.
strike fails
NEW YORK (A')-A new effort
by School Supt. Bernard E. Dono-
van to end a citywide teachers'
strike was. angrily rebuffed yes-
terday by Rhody A. McCoy, Negro
administrator of a Brooklyn school
district.
McCoy accused Donovan of col-
lusion with Albert Shanker, presi-
dent of the striking AFL-CIO
United Federation of Teachers.
Shanker, saying he saw "no
agreement on anything of sub-
stance," called for around-the-
clock negotiations 'to end the
strike which has kept most of the
city's 1.1 million pupils out of class
for five of the first seven days of
the fall term.
The teachers struck over job
security they felt was threatened
by decentralization 'of the huge
school system-giving more power
to neighborhood school boards.
)LINES DRAWN
The lines have been drawn over
the ouster last spring of a group
of teachers in McCoy's Ocean Hill-3
Brownsville District, which trig-
gered a walkout by their col-
leagues in the district.
Since the spring walkout, the
local board has replaced a number
of the teachers involved. The UFT
has demanded that they be re-
turned to their classrooms.
Donovan directed McCoy Tues-
day, to reinstate 100 teachers in
the mostly Negro and Puerto Rican
district and to guarantee a quiet
atmosphere for teaching.
McCoy fired back at a news
conference that Donovan and
Shanker were trying to dictate a
settlement and said he would not
accept it if it cost him his job.-
STRIPPED OF DIGNITY
Hie said Donovan and Shanker
had "stripped the Black and Puer-
to Rican man of dignity and self-
respect."
"They jointly make a decision
to determine the actions of a third
party. It's indecent," McCoy said.
"The public, watching these ad-.
tions," he continued, "is witness-
ing the death of a Black and Puer-
to Rican community whose quest
for . self-determination has been
killed by one of the most unholy
and unprofessional marriages in
modern history."
At a separate news conference,
Shanker demanded further Liego-
tiations.
I
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Senate Judiciary
approves Fortas
WASHINGTON WA - By an 11-6 vote, the Senate Judic-
iary Committee approved yesterday President Johnson's hotly
contested nomination of Abe Fortas to be chief justice of the
United States.
Senate debate on the nomination is expected'!to start the
first of next week, with opponents vowing to wage a filibuster
if necessary to block confirmation.
Leaders of both parties have expressed doubt that a fili-
buster can be broken. A two-thirds majority of senators vot-
ing is required to invoke the Senate's debate-limiting cloture
rule.
The committee vote, after precedent-setting hearings at
which Fortas was the first nominee for chief justice ever
questioned by a congressional committee, turned out as ex-
pected.
Johnson, who submitted Fortas's nomination to the Sen-
ate on June 26, had no comment.
An associate justice of the Supreme Court since 1965,
Fortas was nominated to succeed Chief Justice Earl Warren,
who is retiring.
Johnson nominated another old friend and advisor, Cir-
cuit Court Judge Homer Thornberry of Texas, to replace For-
tas as an associate justice.
The President has accepted Warren's profferred retire-
ment effective upon Senate confirmation of a successor.
Thornberry's nomination has been set aside by the Judic-
iary Committee pending the outcome of Senate action on
Fortas's appointment. - T
Kennedy approves Fortas
Senators Edward Kennedy (D-Mass) and Birch Bayh (D-Ind) awaited the start of yesterday's
Senate Judiciary Committee meeting together, be fore voting to approve Johnson's nomination of
Abe Fortas as chief justice. The nomination has been tied up in the committee for months and was
only voted out by a compromise between foes and supporters of his nomination.
SPECULATJON ATTACKS:
French franc face trube
possible devaluation, foreseen,
s
f-
-S
By STEPHENS BROENING French economy can absorb the tion level and the Bank of France
Associated Press News Analysis large rise in labor costs - up to has been, fprced to support the
PARIS (R) - Weakened by last 14 per cent - forced by last franc almost daily on foreign
sprng' stden-wokerstrkes Ispring's strike settlement. This markets.
springs student-worker strikes, will determine whether French The short-term outlook w as
then attacked by speculators, the industry can compete in - foreign summed up this week by the busi-
French franc is now in deep trade. ness magazine "Enterprise" which
trouble. "
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INC.
LONG ISLAND CITY, N.Y 11101
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The situation has changed 'since tacked the problem aggressively. serves can withstand a prolonged
President Charles de Gaulle boast- Premiere Maurice Couve de Mur- deficit in our trade balance. But
ed less than two years ago, "We PreeC
have made the franc one of the ies governm'ent has submitted1 psychologically, doubts about the
most solid currencies in the a 1969 budget calling for a 7.1 franc are becoming greater.
world.'' dper cent growth in the national If French reserve continue
some tim product, while keeping retail pric- run down at a rapid rate, De-
And is has - been some times rises below 4.1 per cent. Gaulle seems to. have two altefna-
since De Gaulle - attacking the tives, if he wants to maintain his
"Anglo-Saxon" currencies - has In addition, the government has gold stocks:
lectured the world on the need for lifted the exchange controls im- 1. Reverse the expansionist
scrapping the present internation- posed in May. Government sources economic policy chosen to dispel
al monetary system for a return to admit that was a gamble. The the aftereffects of the spring up-
the gold standard, , Bank of France will report to- heal
The reason is not hard to find, morrow on its reserve position af- 1 But a deflationist policy would
The franc would be among' the ter the first full week without ex- aggravate unemployment, already
change controls, giving an indi-' grvt nmlyet led
hardest hit monies in any massive caion ro s, th gamble at a disquieting level, ,and perhaps
new run'out of paper currencies. cation how successful the gamble spark another round of labor tur-
As it is, despite energetic gov- has been. -?bulence.
ernment measures to restore con- Just after controls were lifted, 2. Devaluate the franc. But
fidence in the franc, many here Sept. 4, the franc improved on in- some economists, pointing to the
are betting that the franc may ternational exchange markets. recent British experience, claim
be devalued in the coming months. But for more than a week the this would not necessarily resolve
One sign of failing confidence franc has fallen to the interven- the problem.
has been the flight of capital out: - - _ --
of France. This has already cost'
the Bank of France nearly $2.4
billion since May, or more than a; Iliafra
third of the gold and hard cur-:
rency reserves De Gaulle had'
amassed before the spring crisis. t
Another sign is that the Bank refuses t6capitulate
of France has forced up day-to-
day money rates to near 7 per
cent. This is the rate of interest LAGOS, Nigeria () - Radio city of Owerri, the radio said the
short-term borrowers - and spe- Biafra declared yesterday "nd Biafrans plan to continue to fight.
culators - have to pay to obtain1 The secessionists have only one
francs. -.1 force on earth can conquer Bia- major town left to run to. This is
Though some commentators fra's will to survive," Umuahia, the headquarters of
have expressed concern about this The broadcast expressed de- their leader, Lt. Col. C. Odumegwu
rise,, one Western expert said it fiance even as the stage apparent- Ojukwu. And this is where the
was not especially alarming. "If ly was set for a last stand by se- Biafrans will perhaps make their
it goes to 10 or 12 per cent, then cessionists in the 14-month-old final stand.
you'll know the heat's really on," civil war. They are "struggling to escape
he said. Following up the federal gov- genocide, ' aggression and naked
Underlying the franc's trouble is ernment's announcment Monday savagery," the radio said.
the question of whether the I that its troops had captured the In answer to the Organization
of African Unity's plea that the
rebels surrender, the broadcast
said: "We want the OAU to know
. no force can stifle Biafra's
IN PERSON aspiration to be sovereign and
free."
BELA FO N TE About six million Biafrans are,
being squeezed into an ever-de-
creasing area. The 29,000 square
BLOCK SALES miles held at the breakaway from
federal Nigeria May 30, 1967, are
September 18 n down to about 3,000.
Nils-Goran Gussing of Sweden,
> who came to Lagos on a U.N. as-
GENERAL SALES signment Aug. 8, met with Sec-
September 20-25 retary-General U Thant in New
Lobby SAB York to discuss his work of help-
ing to get food to civilian victims
on both sides.
THURSDAY, SEPTEMBER 26 In Ottawa, Foreign Secretary
8:30 P.M..... Mitchell W. Sharp said Canada
University Special Events will raise the Biafra-Nigeria ques-
Building tion in the United Nations if the
s f Organization of African Unity
does not.
Leaders reportedly h a v e
made tentative plans to force
a vote Sept. 27 on cutting off
the expected filibuster.
If this fails, a second attempt
may be made in the middle of
the following week, provided the
iirst vote comes close to the re-
quired two-thirds majority.
Should two attempts to invoke
the cloture rule fail, the fight to
win Fortas's confirmation pre-
sumably would be abandoned.
An amendment to the gun con-
trol bill now before the Senate
may be seized on by opponents to
get in some licks at Fortas before
the debate on his nomination
starts.
The amendment, offered Mon-
day by Republican leader Dirksen,
would bar the Supreme C o u r t
from overturning obscenity rul-
ings of, federal juries and state
courts.
Dirksen, who is supporting For-
tas's nomination, said that the
way tocombat the circulation of
obscene materials is through leg-
islation, not by opposing the ap-
pointment of a chief justice.
But senators who have made an
issue of Forta§'s support of Su-
preme Court decisions reversing
obscenity convictions reportedly,
plan to emphasize this in debate
on the gun bill in an effort to
gain votes against his confirma-
tion.
Some opponents are passing the'
word that the'y think it may be
possible to defeat Fortas's con-
firmation on a straight up-and-
down vote, without resorting to a
filibuster
/' Only Monday, Sen. Milton R.
Young (R-N.D.), announced he
was switching his position a n d
would vote against confirmation
because of a 5-4 Supreme Court
decision, in which Fortas joined,
reversing an obscenity conviction
in California involving three strip-
tease films.
Nuclear pact
up for vote;
no datef set
WASHINGTON (A) - The Seh-
ate Foreign Relations Committee
yesterday approved a treaty to
halt the spread of nuclear weap-
ons and sent it to the floor for
action.
The vote was 13-3,, with three
abstentions.
T h e majority overrode objec-
tions of members who urged de-
lay because of the Soviet-led in-
vasion of Czechoslovakia.
Acting Chairman John Spark-.
man (D-Ala.) said he hoped the
Senate would act during the cur-
rent session of Congress, on the
nonproliferation treaty. No date
has been set for a Senate vote.
A two-thirds vote will be need-
ed to give Senate consent to the
treaty under terms of the Consti-
tution.
The heavy endorsement in the
committee came after weeks of
uncertainty over whether the
treaty would reach the floor in
view of the Czech crisis and con-
cern about other Soviet intentions.
Russia has signed th e treaty
and Senate.-critics h a d argued
i m m e d i a t e U.S. participation
would be a gesture of cooperation
with that cq ntry at the same
time it was being accused of ag-
gression.
Backers urged that the treaty
be considered a step toward head-
ing off a nuclear war and not con-
nected to the Soviet actions.
The treaty would pledge nu-
clear nations signing it not to give
nuclear weapons or the know-how
to make them to countries not now
possessing them.
Non-nuclear countries would
pledge they will not seek or ac-
quire such weapons.
Senate votes life sentences
for crimes involving guns'
WASHINGTON (R) - The Sen-
ate voted yesterday to make pun-
ishable by life imprisonment the
use of, firearms in numerous fed-
eral crimes.
Sen. Peter H. Dominick (R-
Colo.) proposed the amendment to.
a bill prohibiting interstate mail
order sales of rifles and shotguns.
Numerous amendments remain
to be acted on, including proposed
registration of firearms and lic-
ensing of owners, but leadiers are
hopeful of passing the bill before
the end of the week.
Dominick t o 1 d the Senate it
would serve notice on anyone
armed with a gun while commit-
ting a federal crime of violence
that he was running the risk of
life imprisonment.
Dominick's amendment provides
that in addition to the present
penalty for such a crime, a per-
son may be sentenced to imprison-
ment for an indeterminate num-
ber of years up to life if carrying
a firearm wile committing the
crime.
The Senate also adopted by
voice vote an amendment to pro-
hibit the confiscation by a gov-
ernment agency of a n y legally
held and used firearm.
- Sen. Daniel Brewster (D-Md.)
said there is nothing in the bill
that would allow confiscation but
there is widespread concern among '
gun owners that firearms control
could eventually lead to that.
Also accepted as p art of the
firearms control ; measure was a
provision making an exception to
an over-all ban on over-the-coun-
ter sales of rifles and shotgun~s to
non-residents of q state.
The exception, written into the
bill by the Senate Judiciary Com-
mittee, permits a person to make
a purchase in an adjoining state
if this complies with the laws of
both states.
The bill provides that in these
sales, as well as mail order sales
within a state, a buyer must file
an affidavit of eligibility and the
seller must hold up delivery for
seven days to give police a chance
to object.
The Senate rejected 45 to 42 an
amendment by Dodd to tighten up
a requirement that an applicant
for a dealer's, license must have
premises from which he conducts
or intends to conduct business.
Dodd's amendment would have
specifically required a dealer to
have business premises, as dis-
tinguished from someone who
might handle sales of firearms or
ammunition from his home. -
NATIONAL GENERAL CORPORAIO
FOX EASTERN THEARES(o
FOR VILLBE
375 No. MAPLE RD.'769-1300
PRIOR TO BROADWAY!
SEPTEMBER 17-29
M OLI ERE'S'
9 4
Resistance Open House
WEDNESDAY and THURSDAY,
September 18 and 19
8-11 P.M.
HELD OVER
I
I in~.u - - ~ - I -E - UUW