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February 10, 1959 - Image 1

Resource type:
The Michigan Daily, 1959-02-10

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5k 43a t~



Sixty-Eight Years of Editorial Freedom




State To Present


A $2.7 million payment to the University is due "sometime this
week" from the state, Vice-President in Charge of Business and
Finance Wilbur K. Pierpont said last night.
This payment will postpone the University's payroll crisis until
April. Gov. G. Mennen Williams announced state payments would be
resumed -to the state universities last week.
Williams said resumption of payments was made possible by the
state's large corporations paying their taxes early, providing the cash-
-short state treasury with enough
funds to meet its obligations.,
J= op Stopped Since December
The University has not received
t' a!"a payment from the state since

The state payment will meet the
University's March 5 payroll of $2,-
500,000, thus postponing any pay-
less paydays until April. The Uni-
versity's cash would have been
exhausted by that date, Pierpont.
said, and it is unable to borrow
further funds.
Williams' plan to mortgage the
Veterans Trust Fund and allow
the University and Michigan State
University to borrow against the
fund is now being considered by
the state legislature.
Bills in Committee
Bills to permit mortgaging are
now being worked on in commit-
Late in January, the University
financial situation was converted
into what Pierpont termed "an
emergency." Detroit banks inform-
ed the University and MSU that
no further loans would be made
to the two institutions.
The University borrowed $500,-
000 in December and about $3.5
million in January to meet its pay-
Issues Statement
Pierpont issued the following
statement on Jan. 27:
"By March 5, the University will
have expended all its funds for
general operations, and the state
will owe the Vniversit $10 million.
"The University will have spent
the $4 million it has borrowed from
the banks. It will have spent the
$4 million in student fees collected
for the spring semester.
Withheld Payments
"It will have withheld payments
to its creditors since December,
amounting to well over $1 million.
"Since November the University
has made faculty and staff salaries
its first obligation. This policy will
be continued."
The suggestion of "legal action"
against the state to avoid missing
a payroll was suggested Jan. 29 by
Vice-President and Dean of Fac-
ulties Marvin L. Niehuss. While
expressing lope that such a step
would not be necessary, Niehuss
said,. "We would take every legal
'U' Might Sue
"I would recommend the pos-
sibility of legal action for our pay-
ments," he said. "I am sure the
University would not sit there with
do money if other agencies were
getting their appropriations, with-
out exhausting all possibilities.."
Niehuss sent letters to faculty
members explaining the Univer-
sity's crisis. "I hope our own peo-
ple will consider the record of the
University and the fact that the
state has supported it well in the
past," he commented.

Groes beck
'U' Record
A record enrollment for the
spring semester of 22,451 students
was announced yesterday by Ed-
ward G. Groesbeck, director of the
Office of Registration and Records.
This figure includes students en-
rolled in residence credit courses
at Ann Arbor, and Flint. Last
spring 22,417 were enrolled on the
two campuses in credit courses.
The current figures show 22,048
enrolled in Ann Arbor credit pro-
grams and 403 at the University's
Flint College., One year ago 22,034
were enrolled here and 383 at
Enrollment last fall showed 23,-
506 students in the University. Of
these, 23,106 were enrolled at Ann
Arbor and 400 at Flint. Last fall's
enrollment set a record for Uni-
versity attendance.
City/ council,
Upholds Veto
The City Council last night up-
held a mayoral veto of its measure
passed last week rezoning part of
Baldwin Avenue to allow Kappa
Delta sorority to build an annex
on land it could buy there.
It was the first veto by Ann
Arbor's Mayor; Prof. Samuel J.
Eldersveld of the political science
department, since he took office in
April, 1957. -
Mayor Eldersveld vetoed the
ordinance late last week for two
reasons: .1) he and City Attorney'
Jacob F. Fahrner, Jr., were unsure
whether the ordinance had been
passed by a sufficient majority;
2) he questioned the wisdom of the
ordinance itself in view of the
city's needs and thought the Coun-
cil might wish to consider it fur-
Overriding Eldersveld's veto
would have taken eight votes.
Since the count in favor of doing
so was only six to four, the veto
In other action, the Council
postponed consideatioti of the
city's bus problem.
Ann Arbor Transit, Inc., the
local bus company, filed notice
last week that it intends to dis-
continue operations as of June 1.
The company has been losing
The Council will reconsider the
problem in roughly three weeks
when the company's books have
been audited.
Company representatives could
not attend the meeting.
Later in the meeting, the Coun-
cil voted to give a citation to the
firemen who rescued four children
in a fire in a home on South State
Street last Thursday night.
Kingston Trio
To Perform
The folksinging Kingston Trio
will appear March 14 at Hill Audi-
torium, Arthur Brown, adminis-
trative vice-president of Inter-
House Council announced yester-
The performers will be the
mainstay of the Assembly-IHC
Spring Show. hie explained, but
plans for incorporating a small
Detroit instrumental groul into
the concert are also being con-




Ike Reveals
School lan'
Aim Aid Program
At Needy Districts
Eisenhower Administration yester-
day formally unveiled a five-year
program of federal school aid.
aimed at helping to provide five
billion dollars worth of facilities.
The program was presented by
Arthur Flemming, Secretary of
Health, Education and Welfare, as
one that would help needy school
districts and institutions of higher
learning without pushing Presi-
dent Dwight D. Eisenhower's bud-
get into the red. ,
Flemming disputed advance
criticism -by Sen. James Murray
(D-Mont.), chairman of the Sen-
ate Education Subcommittee, that
the Administration plan is aimed
at helping bankers rather than
students and teachers.
The Secretary told a news con-
ference that under the -new bill,
school districts urgently in need
of schools could get federal aid
amounting to one-half the cost
of bonds and interest incurred to
build schools.
He figured this would make it
possible to begin three billion dol-
lars worth of construction during
the next five years in money-
short communities.
Colleges and universities could
get federal help in debt retire-
ment with the government agree-
ingxo. pay:.25 per cent of the prin-
cipal of long-term bonds issued
by institutions to finance hous-
ing, academic or other education-
al facilities.
South Korea
Warns Action
Against Japan
SEOUL (P)-President Syngman
Rhee's government made a veiled
threat yesterday to use force if
necessary to prevent the return
of Koreans from Japan to Com-
munist North Korea.
South Korea also threatened to
break off current negotiations with
Japan on several postwar issues.
Japanese Foreign Minister Au-
chiro Fujiyama has announced the
intention to repatriate about 117,-
000 Koreans to the Communist
North-a decision yet to be ap-
proved by the full cabinet. He said
this number had requested to be
sent to North Korea, and repatri-
ation had been decided upon for
humanitarian reasons.
Rhee's' government claims it is
the ony legal Korean government
and therefore all Korean citizens
in Japan should be returned to the


Student Loan Funds
The University will receive an "interim appropriation" of $36,228
from the National Defense Student Loan Fund within the next week.
For the balance of the academic session, $125,000 was originally
requested. Chairman of the committee on student loans, Dean of Men
Walter B. Rea, indicated that this was a maximum fgure.
Still on file at the federal Office of Education are requests seeking
$25,000 in funds for the summer session and $225,000 for the academic
vear 1+959-6n_ Because of the small





amount provided, Dean Rea said,
it may be possible to give loans at
first only to students who have
"special consideration" under the
National Defense Education Act of
Included in the preferences are
"students who wish to teach in
elenientary or secondary schools"
and those with a "superior' ca-
pacity or preparation in science,
mathematics, engineering or mod-
ern foreign language."--
Grants are already being made,,
he reported. Since the money has
not yet come, the University is
operating on a "deficit loan fi-
nancing." This will probably also
be done with summer loans, he
Favorable Terms
He added that loans will have
"generous terms of repayment,"
and will be "tailored" to individual
need. (Under the "forgiveness;
clause" of the National Defense
Education Act, students in educa-
tion may deduct 10 per cent for
every year up to five years that
they teach.)
Dean Rea stressed, however,
that those in more general fields'
were also eligible, although they
miglt have to -wait until next year
when more funds would be avail-
A bill asking $24 million for the
fiscal year 1959-60 will go before
Congress this spring. If the bill
is approved, it will raise the Uni-
versity's appropriation four times,
or to approximately $145,000. The
University hopes to have that
money some time in April.
Fund Shortage Noted
- Commenting on the allotment
to Michigan State University of
$48,305, Dean Rea noted a short-
age of loanable funds at the school
as a reason for its larger appropri-
ation. "The government takes into
consideration available backlog of
money and the number of students
who borrow," he explained.
The committee on student loans
will meet this afternoon, he said,
to discuss applications for federal
loans and to clarify policy on fund
use and borrowers' obligations.


Ivy Schools
Turn Down
Loyalty Oath
Educators at nine eastern col-,
leges and universities have sharply
criticized loyalty-oath provisions
of the National Defense Education
Act, and Princeton, Bryn Mawr
and Haverford have refused to ac-
cept loans until the oaths are
There are two provisions: one
requiring a pledge of allegiance to
the United States and the Consti-
tution, and the other swearing
that the applicant does not believe
in or support any subversive or-
ganization. Most objections have
been raised against the latter.
U' Received Loans
Although the University has not
made any official protest, Vice-
President Marvin J. Niehuss said:
"The University of Michigan has
applied for loans totaling $375,000
and submitted plans for 16 new
graduate 'programs under'the pro-
visions of this act. We do not
intend to withdraw these requests
because of the requirements they
impose on students.
He added, "At the same time, I
personally do not believe any use-
ful purpose is served either by the
oath or the affidavit. Of the two,
the affidavit is by far the most ob-
jectionable. Its wording is especi-
ally broad and ambiguous."
Presidents of Yale, Harvard and
Princeton universities recently sent
in formal protests to Arthur S.
Fleming, secretary of health, edu-
cation and welfare.
Calls Measure 'Odious'
A. Whitney Griswold, president
of Yale University, declared such
measures "are at best odious, at
worst a 'potential threat to our
Loyalty requirements, he con-
tinued, "seem to represent a lack
See EAST, page 7

Regents To Conside
Action at Scheduled
February Meeting
The Wayne State Univera
Board of Governors voted at
January meeting to set up a Jo
committee with the University
examine the feasibility of merg:
the two institutions, according
Franklin Willin, assistant
Wayne State president Clare3
The Regents met with' i
Wayne State group Saturday e'
ning "socially," but this propoa
was discussed. The Regents :
portedly approved of the idea, 1
no formal action will be taken
the proposal until the next I
gents' meeting on Feb. 20. '
The Wayne County delegat
in the House ivill introduce a c
stitutonal amendment today
give Wayne State the same aut
omous constitutional status as t
University and Michigan St
Die In Committee
However, a Lansing source p
dicted that the bill would die
Although the Wayne "Univ
sity Council" (equivalent to
University's Faculty Senate) pa
ed a motion approving of its Bo
of Governors' plan to examine
feasibility of merging the two'
stitutions, some opposition to 51
aemoye has been. developing.
Send Postcard
Postcards saying "because
utter disregard' of the opini
and wishes of the faculty, stude
and. alumni of Wayne State U
versity: Hilberry Must Go." w
sent to Wayne State officials i
alumni on Jan.11. The cards w
signed by "The Minute Men
Wayne." Although the senders
the cards have Wot been discove
they have ceased their operati
according to Willin.
A high-ranking Democratic st
official claims that there is wi
spread opposition to the mer
among the faculties of b
schools. Other Democratic -:
cials claim that there is "ci
siderable difference of' opini
within the Democratic party a
the merger question.
Governor G. Mennen Willia
is taking no stand now on
Wayne State-University mergea
Tells of Criticism
Don ,Stevens, a Democra
member of the State Board
Agriculture (Michigan State U
versity's governing board) and
Board of Agriculture's represen
tive on Wayne State's Board
Governors has criticized the me
pr proposal.
The Hutchinson Bill, wb
would make Wayne State's' bo
appointive, was passed by the S
ate by a 22-13 vote largely on pa
lines, with the Democrats oppos
the bill. The charge was Made
Senator. Stanley F. Rozyci
Detroit), who said the bill w,
carefull plot to aid the chances
The bill passed the House edu
tion committee with two ame
ments which might enable the
to become effective. These amel
See WAYNE, page 2
Rush Groups
To Assembl

orld News Roundup
By The Associated Press
WASHINGTON - President Dwight D. Eisenhower gave Secre-
tary of State John Foster Dulles "a few weeks" leave of absence yes-
terday to undergo a hernia operation to recover from an old intestinal
Immediately there was some speculation as to whether
Dulles would return to his post as the top ranking cabinet officer
and foreign policy administra-


May Festival To Feature Guest Conductors

Virgil Thompson, Thor John-
son and William Smith will head
the list of guest conductors to be
featured at the 66th annual May
F e s t i v a 1, presented April 30
through May 3 in Hill Auditorium.
The Philadelphia Orchestra,
conducted by Eugene Ormandy,
will return to the Festival as in
many past years to participate in
all of the concerts. Also making
a return appearance, the Univer-
sity Choral Union consisting of
310 voices will be featured in two
Dorothy Kirsten, the noted San
Francisco Opera Company so-
prano, and Giorgio Tozzi, well-
known basso of the Metropolitan
and San Francisco Opera com-
«....,C.n ~ilf'l~ fln nr~f A Afi'.C

Among these are Rudolf Serkin,
pianist, Sidney Harth, violinist,
Prof. Robert Courte of the music
school, violist; William Kincaid,
flutist; and singers Lois Marshall
and Ilona Kombrink, sopranos.
Howard Jarratt, tenor, and Aure-
lio Estanislao, baritone, will also
At the first program, which will
be a concert devoted entirely to
Brahms' works, Serkin will play
"Piano Concerto No. 1 in D mi-
nor," and the orchestra will play
"Academic Festival Overture" and
"Symphony No. 3 in F major."
The evening concert on May 1,
featuring Harth and Courte will
include "Flos Campi" by Ralph
Vaughn Williams, "Scheresses" by
Prn~i ipn,.- a~. nA "Violn

"Flute Concerto" by Virgil Thom-
son. The performance will be con-
ducted by the composer. "Power
Among Men," also by Thomson,
will receive its world premiere in
this program.
Kirsten To Perform
Saturday evening, Dorothy Kir-
sten will star, and Ormandy will
conduct "Chaconne" by Bach, andI
Prokofieff's "Symphony No. 1."
The fifth concert will present
the Choral Union, and Johnson
will conduct Handel's oratorio
"Solomon" in observance of the
200th anniversary of the compos-
er's death.
The final concert on Sunday
--e - 1;1_MIV. ~. MAI

omist for the United States Cham-
ber of Commerce, Yesterday: de-
plored the "wringing of hands"
in comparing American economic
growth with that of the Soviet
The Chamber's Walter Fackler
differed sharply with the AFL-
CIO's Walter Reuther who said
the Communists rapidly are clos-
ing the economic gap and that
this poses a serious threat for the
NEW YORK - The Journal
American said yesterday that the
Justice Department is preparing
to subpoena the records of United
States Steel Corp. in connection'
with an antitrust investigation.
* * *'
NEW YORK-The federal gov-
ernment yesterday limited bad
weather landins by the new Elec-

Counselors for spring ru:
meet with their respective
groups tomorrow and Th
evenings At the League.
On Wednesday groups
bered one through six wil
at 7:00 p.m. Groups seven tl
11 will meet at 8:30 p.m.
On Thursday at 7:00
groups 12 through 17 will
At 8:30 p.m. the remaining

I ';



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