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Sixty-Eight Years of Editorial Freedom
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VOL. LXIX, No. 110 ANN ARBOR, MICHIGAN, FRIDAY, MARCH 6, 1959 FIVE CENTS
Gov. Williams Refuses To Concede
That Hope of Borrowing Plan Gone
LANSING (P)-The last two remaining legislative vehicles for a
borrowing solution to Michigan's cash problem were killed off yesterday
In the House.r
Their demise all but sealed the doom of submitting any proposal
to a statewide referendum April 6.
But Gov. G. Mennen Williams refused to concede that all chance
of offering a 50-million-dollar borrowing plan to voters was gone.
Hopes To See Action
"I still think they can do something tomorrow and I hope they
will," he told a news conference. Republicans and Democrats traded
accusations anew that refusal of the other party to compromise was
-responsible for the apparent fdil-
a BarHouse Speaker DonR.Pere-s'(-
BakBoard oBuchanan) said, "Every compro-
mise offered by House Republican
leadership has been flatly turned
B- aLes down by Democrats."
Leaves No Choice
SD *i - c g"Gov. Williams said the GOP
O n "'left no choice but payless pay
days or going into the Veterans
WASHINGTON (-Tle Federal Trust Fund" by "rejecting all
Reserve Board yesterday madea efforts to get together."
rpse ve dytwrdytigdhr The compromise attempts cen-
surprise move toward tighte tered on efforts to stake out an
money, boosting the discount rattred offrtsetonsak"nutsan
at four reserve banks. area of agreement on a "nuisance"
The action indicated new con- tax package pledged to back up
tern about ' a possible resurgence any issue of' bonds or notes.
of inflation. sgRepublicans consistently have
of inflation, insisted on some sort of tax pledge
The discount rate will be In-asamtr frncp.Thy
creased to three per cent from as a matter of principle. They
two and one-half per cent, effec- vigorously asserted a preference
tive today, at reserve banks in for a sales tax increase for either
New york, Philadelphia, Chicago one or two years.
and Dallas. The eight other banks The nuisance tax discussions re-
in the system are expected to volyed around new or increased
adopt similar increases later, levies on insurance premiums, beer,
An increase in the discount rate cigars and pipe tobacco, commer-
-the interest charged when mem- cl advertising and estates.
ber- banks borrow from the reserve Proposes Conference
system-usually portends a rise in Rep. Joseph J. Kowalski of De-
other interest charges. troit, Democratic floor leader, said
The Board traditionally raises he proposed in an inter-party con-
the rate when it wants to discour- ference of legislative leaders
age borrowing which it feels might Wednesday that selected tax meas-
add to iflationary pressures. ures be submitted with bi-partisan
Wall Street was surprised by the sponsorship.
move, announced after financial Rep. Kowalski said that Re-
markets had closed for the day. It publicans took the idea back to
was the first discount rate increase their respective caucuses and were
since last October. able to develop no agreement,
A Board spokesman was reluc- leaving the bi-partisan approach
tant to elaborate on the brief for- up in the air.
mal announcement of the action. Rep. Pears blamed Democrats
In response to an inquiry, Treas- for neglecting to furnish any pro-
ury officials said they regarded the posals in writing for caucus dis-
Board's action as consistent with cussion.
sound monetary policy. Saw Governor
Acting on his own, Rep. Rollo G.
S urve Shows Conlin (R-Tipton), House t -a
u tion chairman, took a new sales
£1 tax proposal to the Governor, and
Consum ers they spent an hour reviewing the
Positions Gain Rep. Conlin suggested a one
LT cent sales tax increase for seven
months to be pledged for bond re-
Consumers are becoming more tirement, the combination ques-
optimistic about their financial tion to be submitted on the Apiil
situations and prospects than they 6 ballot for a final decision by
were a year ago, according to a voters.
survey conducted by the Univer- Gov. Williams said he told Con-
sity's Survey Research Center and lin that Democratic leaders in the
the Board of Governors of the Senate and House informed him
Federal Reserve System. "there was no disposition" on the
The survey shows the propor- part of their respective caucuses
tion of people who planned to to recoil from previous opposition
make major expenditures during stands to a sales tax proposition of
1959 was moderately larger than any description.
in early 1958. Asked if he thought the situa-
This was the 14th annual sur- tion had reached the "end of the
vey of consumer finances and was line," Conlin said he thought it
conducted in ,January and Febru- had.
By THOMAS KABAKER
Robert Ashton, '59, president of
the Inter-House Council, said last
night neither he nor Interfra-
ternity Council President John
Gerber, '59, would ask the Student
Government Council to consider
deferred rush for men.
Ashton said although he was in
favor of deferred rush for fresh-
men, he felt the IFC and IHC
should reach an agreement as to
what would be best for the men.
"We do not want to give IFC the
impression we are trying to fo'rce
something down their throat" by
asking SGC to deal with the prob-
lem, he noted.
Ashton later said the problem
was one which should, be handled
by the two organizations and that
they would ask SGC to take no
action on the matter until IFC
was in a position to present a re-
port with its recommendations.
He expressed hope that the two
groups could reach a mutually
suitable agreement on this issue.
William Fehlberg, '60E, execu-
tive vice-president of the Council,
announced the Michigan House
Plan Evaluation Committee report
would be completed by the end of
The Plan was organized in 1938
as a guide for the administration
of men's housing units for the time
when West Quadrangle, the Uni-
versity's first quad, was opened in
Boyd Conrad, '61, was appointed
house services chairman and John
Morgan, '61, was appointed pub-
licity and public relations chair-
man' of the group.
WASHINGTON (A) - Secretary
of Defense Neil McElroy said yes-
terday he and the Joint Chiefs of
Staff believe a surprise 'attack by
Russia now is almost impossible.
He told a news conference the
preparations .and military move-
ments required for an attack with
conventional arms probably would
be observable and known.
And, he said, it is believed a
surprise attack with missiles in
the foreseeable future is almost
In reply to questions, McElroy
also discounted the possibility of
any limited war developing out of
the Berlin situation.
He said "It would be very diffi-
cult to keep it a limited war."
A limited war is unlikely in the
NATO area, he said, and added:
"We do not see ourselves fight-
ing Russia" in a limited war.
The defense chief was asked
what specific plans are being
made, militarily, for coping with
any situation which may grow out
of the Russian demands as to Ber-
He said that he could not discuss
specifics now but "we are doing a
great deal of planning."
For Conference at White House
By ROBERT JUNKER
Wayne State University will
wage a campaign to get its consti-
tutional status approved by the
voters April 6.
The State Legislature approved
Tuesday a constitutional amend-
ment giving Wayne status similar
to the University and Michigan
State University which must be
approved by the electorate.
WSU President Clarence Hil-
berry explained Wayne should gain
"psychological benefits" from con-
stitutional status. It would provide
prestige necessary for obtaining
faculty, and would make the uni-
versity equal to the state's other
The ballot proposal says Wayne
must provide detailed accounts of
income and expenditures to the
Legislature. These accounts will
include faculty salaries, Hilberry
said, but not the names of the,
faculty members receiving such
WSU Vice-President and Provost
Arthur Neef said yesterday Wayne
would provide individual faculty
salaries in coded form to prevent
their misuse. "We would have no
objection to an audit, nor would
we deprive the Legislature of any
figure or salary," Neef claimed.
Hilberry said the detailed ac-
counting did not imply the Legis-
lature would grant specific appro-
priations. He said he expected a
lump-sum' appropriation such as
the University and MSU now re-
ceive, without each sum earmarked
for expenditure by the legislators.
"A line-by-line budget is in our
judgment, as well as that of the
Legislature, undesirable," Hilberry
commented. He explained the
Legislature once made specific ap-
propriations for state colleges, but
"moved away from this procedure
"There is no disagreement be-
tween the Legislature and Wayne
on this point," Hilberry empha-
Hilberry also claimed constitu-
tilonal status would free Wayne
from many legislative bills which
could be detrimental to it without
that being the Legislature's inten-
tion. He cited state civil' service
requirements and working hours
laws as examples.
The House approved the Senate
measure of the bill. The original
House proposal did not include
the detailed accounting provision.
The amendment will provide a
board of governors subject to laws'
enacted by the Legislature. "Let's
face the fact that the other two
universities also are subject to the'
Legislature's law," F. Morse Cooke,
WSU legislative agent, said.
Khrushchev Hints Eased Deadline
LEIPZIG, East Germany (P)--Premier Nikita Khrushchev eased
away from his May 27 deadline on Berlin in a free-wheeling talk
yesterday and offered lightly to sign a Western-drafted German peace
He punctuated that with another warning to the West:
"Whoever bumps us with his elbow will break it."
The Soviet leader took the floor in high good humor after drinking
a series of toasts to peace and trade-in white wine, cognac and red
wine-at an impromptu luncheon given by Leipzig's mayor.
He said his deadline for an end to the four-power occupation of
Berlin might be postponed, if the West will negotiate sensibly, until
. . .in no hurry
POLAR ORBIT :
INGLEWOOD, Calif. (JP) -Dis-
coverer I is a mystery satellite no
The Air Force said yesterday it
definitely has achieved the first
polar orbit, as planned.
The season its fate has been a
question mark since it was blasted
aloft last Saturday is that, instead
of pointing dart-like at the horizon
as it circles the earth, it has been
This has made its radio signals,
directional like a flashlight beam,
extremely difficult to track.
Apparently to blame is a scan-
ning device intended to keep the
1,300 pound, 19-foot-long cylinder
Meanwhile Pioneer IV streaked
on through space yesterday nearly
a third of a million miles from
The little gold plated cone's
transmitter was still radioing back
the solutions of space mysteries,
from farther out than any such
reports were ever received in the
June 27 or maybe July 27. "We are
in no hurry," he added.
Khrushchev insisted this is not
an ultimatum. At the same time
he reiterated that the Soviet Union
will sign a separate peace treaty
with Communist East Germany,
an eager potential heir to Soviet
occupation control, if the West
refuses to sign an all-German
treaty. His government has pro-
posed that foreign ministers meet
next month to consider the Berlin
issue and a German peace treaty.
Says 'Will Sign'
"Write out a peace treaty and
we'll sign it," Khrushchev said.
That did not mean, of course,
that he would sign anything he
disagreed with. Despite his ami-
ability, he indicated no real con-
There was a hint of apology in
"I haven't said anything new,
but repetition is the mother of
Adds New Point
He added a new point: the Soviet;
Union will not turn over to East
Germany the control of the West-
ern world's military lifelines to
West Berlin unless it signs a sep-
arate treaty with the East Ger-
What he did not say was that
such a treaty could be signed at
any time. The East German Com-
munists are clamoring for it in the
hope it would give their regime
greater status in the eyes of the
West Berlin is isolated 110 miles
inside East Germany. Last Nov. 27
Khrushchev threatened to let the
East Germans take over the road,
raid and air routes into the city
unless he got an agreement in six
months for his plan to convert
West Berlin into a demilitarized
WASHINGTON () - A State
Department spokesman empha-
sized yesterday the United States
insists Russia has no legal right
to hand over East Berlin to East
Germany - on May 27 "or any
Department Press Chief Lin-
coln White made the comment in
reaction to statements by Soviet
Premier Nikita Khrushchev at
Leipzig, East Germany.
Khrushchev said Russia might
postpone the deadline a month
or two if East-West negotiations
on the issue got under way.
White, asked for comment, said
this appeared to be a lessening of
Khrushchev's apparent rigidity on
the date in a speech he made nine
days ago in Moscow.
"Our position is that we don't
recognize the. Soviet Union's right
unilaterally to relinquish its re-
sponsibilities," White said.
State Department officials took
the view there was essentially
nothing new in Khrushchev's re-
Officials recalled that Soviet
Deputy Prime Minister Anastas I.
Mikoyan suggested on Jan. 24 that
the May 27 deadline could be ex-
On Capitol Hill, Sen. Lyndon
B. Johnson (D-Texas), the Senate
Democratic leader, said President
Eisenhower "has told us there is
'an easing' of Russia's stand on
Berlin" and added:
"I believe this arises from the
fact that America has demon-
strated its unity on this issue. In
my judgment the country will
continue to be united."
"The President will find -- and
Khrushchev will note," Sen. John-
son told the Senate, "that Amer-
ica will stand firm with the Presi-
dent in support of American
Pact with U.S.
ANKARA, Turkey (P) - Iran,
Turkey and Pakistan, scorning So-
viet threats and denunciations,
yesterday signed separate defense
pacts with the United States.
The pacts provide that the
United States "will take such ap-
propriate action, including the use
of armed forces, as may be mu-
tually agreed upon" in event of
aggression against the three pow-
Thus the United States is welded
more firmly to the anti-Commu-
nist Baghdad Pact, embracing
Britain, Iran, Turkey, Pakistan
and Iraq, the last named inactive
since last July's military coup.
The United States has sent eco-
nomic aid to_ the pact powers and
belongs to important committees
but never has formally joined.
Macmillan on Visit
To U.S. for Meeting
WASHINGTON (P) - Presi-
dent Dwight D. Eisenhower yes-
terday asked Democratic and Re-
publican Congressional leaders to
a White House conference today
on the Berlin crisis and German
At the same time, the White
House announced that President
Eisenhower has been in touch
with Britain's Prime Minister
Harold Macmillan regarding the
President's invitation to Macmil-
lan to come to Washington.
Press Secretary James C. Hag-
erty said the United States and
Britain will make a joint an-
nouncement dealing with that in-
vitation at 7:30 a.m., today.
President Eisenhower's arrange-
ment to meet at 10:30 a.m. today
with the congressional leaders of
both parties came a few, hours
after he had an extraordinary
session of the National Security
The White House said the
Council's one and three-quarter
hour session dealt with "the evolv-
ing situation in Berlin and the
broader question of Germany"
In reply to questions, Hagerty
said the meeting with the con-
gressional leaders today will deal
with those same subjects.
He said the meeting will be sim-
ply a discussion of the Berlin situ-
ation and of German problems
Invited to the White House for
the conference are Vice-President
Richard M. Nixon; Senate Demo-
cratic leader Lyndon Johnson of
Texas; 'House Speaker Sam Ray-
burn (D-Texas); Senate Repub-
lican leader Everett M. Dirksen of
Illinois and House GOP chief
Charles A. Halleck of Indiana
By JEAN HARTWIG
Both of the Northwood-Terrace
Tenant Association's requests for
policy changes are being consid-
ered by the University, according
to Robert Grace, Grad.
One, of the changes sought by
the association would provide joint
inspection of apartments for dam-
age assessments by both tenants
and managers. The reqeust also
calls for a detailed list of prior
damages to be provided- for ten-
ants upon occupancy, and a state-
ment of charges to be presented .
at the time of his departure.
"We are certainly in agreement.
with this check-out method,".
Business Manager of Residence
Halls Leonard B. Schaadt com-
mented. "We just have to work
out the details."
Will Take Time
Although the first item can be
"determined almost immediately,"
apartment leases on 30 days' no-
ice will take a little time," he.
Under present University policy,
tenants must sign year-long Aug-
ust to August leases. Problems
arise when students graduating
in February or June are forced
to find subletters for the remain-
ing term or stand the financial
Schaadt, who is "sympathetic
with the general idea" of the
policy change, explained the ne-
cessity for developing a method
to preserve the University's pres-
V WA &"lW A.aj -- "-- J - --ua v
ary. Itconsisted of personal in-
terviews with a representative'
sample of the consumer popula-
tion. The interviewees were asked
about their financial positions,
views on their own and general
Splansfor purchasing durable
goods and houses during the year.
Make More Money
The survey found that more
people are making more money
now than they were a year ago,
and less people are earning less
money than they were a year ago.
This trend was found in all of
the. major occupational groups
and was reflected in the con-
sumers' more favorable evaluation
of individual financial positions.
Forty per cent of the consumers
nterviewed said -they were better
off financially than a year ago.
In a similar survey in early 1958
the percentage was 33.
In general the consumers' buy-
ing plans were only moderately
above a year ago. But a substan-
tial number reported that they
were planning to buy a house.
tentions of buying a house during
1959 was about as large as the
AT 'U' MEDICAL CENTER:
Artificial Kidney Saves Marq
A sudden mercy airplane dasha
tific medical miracles have combi
winning fight against death.
A Marquette girl, Kathy Hanco
doctors today to be in "fair condition
Suffering from a severe kidney;
Kathy was flown on a mercy miss
from Marquette to Ann Arbor Sunda
Admitted to University Hospit
condition, she was immediately tr
stationed at the Medical Center.
Unable To Func
Due to the infection, Kathy's1
their usual function of voiding the b
lated in the blood stream. As a conse
a bad case of poisoning which migh
The artificial kidney, once con
took over the job of separating out
ing, and soon she had registered cor
Kathy is the youngest patient in
to be put on an artificial kidney, an
children in the country ever to be tre
Looker Defines Rulings
On Student Vote in City
By PETER DAWSON
University students may vote in Ann Arbor only under certain
conditions, City Clerk Fred J. Looker said yesterday.
A students may register to vote here if he definitely does not
intend to return home, Looker said. The student may intend to stay
here "an appreciable length of time," he explained, quoting an opinion
by Michigan Attorney General
He may also be unsure where'
he will live next. Or he may be
L71 "free from parental control, re-
u e e r mgard the college townas his home
and have no other home to which
to return in case of- sickness or
POWER other affliction," Looker quoted.
and another of man's many scien- However, Looker added, a stu-
ned here to wage an apparently dent who attends college intend-
ing to return to his former home
ack, six years old, was reported by upon graduation does not obtain
." voting residence here.
infection and in serious condition, Neither does one who comes
ion by the Michigan State Police here to complete his education, is
y. accustomed to returning home
al that afternoon, still in serious during vacation, and, he quoted
reated with the artificial kidney othi arents fruld ncase
of illness or affliction."
tion Normally The deadline for registering for
kidneys were unable to carry out the city spring election is 8 p.m.
body of wastes and toxins accumu- Monday.
equence, Kathy was suffering from Students may register at the
t have resulted in death. City Clerk's office in the City Hall.
nected with Kathy's bloodstream, The office will be open from 8
the chemicals causing the poison- a.m. to 5 p.m. today, from 8 a.m.
nsiderable improvement. to noon tomorrow, and from 8
n the history of the Medical Center a.m. to 8 p.m. Monday, Looker
d is said to be one of the youngest said.
Bated in this way. OfLegal Assistance
Lglassistance at no cost for
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