5k 43a t~ BIaii4l FREE COPY Sixty-Eight Years of Editorial Freedom ANN ARBOR, MICHIGAN, TUESDAY, FEBRUARY 10, 1959 FIVE CENTS TWENTY-TWO P State To Present Million 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- tee. 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- rolls. 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 approach. '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. ENROLLMENT: Groes beck Announces '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 Flint. 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- ther. Overriding Eldersveld's veto would have taken eight votes. Since the count in favor of doing so was only six to four, the veto stands. 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 money. 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- day. 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- sidered. Joint OIM icrger Propos Ike Reveals Five-Year School lan' Aim Aid Program At Needy Districts WASHINGTON (P) -- The 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 South. wSU-'U, INTERIM GRANT: Student Loan Funds By NAN MARKEL 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 T~oB( Informally Discuss A. 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 1958. 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 said. 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- able. 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. Stud 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 dropped. 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 profession." Loyalty requirements, he con- tinued, "seem to represent a lack See EAST, page 7 Regents To Conside Action at Scheduled February Meeting By JAMES SEDER 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 Hilberry. 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 University. Die In Committee However, a Lansing source p dicted that the bill would die committee. 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 merger. 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 ailment. Immediately there was some speculation as to whether Dulles would return to his post as the top ranking cabinet officer and foreign policy administra- '-tor. KIRSTEN, TOZZI TO MAKE' D EBUTS: 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 programs. 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 perform. 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 WASHINGTON - An econ- 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 bloc. 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 future. 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 '; I I