Conference Says Nation's Economic Outlook GoG By SUSAN HOLTZER Sunny skies over the nation's economy were forecast by both participants and speakers at yesterday's sixth annual Conference on the Economic Outlook. In a special survey, 72 economists attending the conference agreed in general that the present recovery will continue. However, about half said the upswing will continue throughout 1959, with the rest predicting a leveling-off toward the end of the year. Gross National Product, most significant barometer of a nation's economic strength, was expected to reach an all-time peak. The economists predicted an increase in the total production of goods and services of about four or five per cent above 1958, or an average figure of $459 billion. Estimates Five Per Cent Agreeing with the survey, Prof. John B. Lansing of the econ- omics department based his' estimate of a five per cent GNP hike on an increase of $7,.5 billion in government spending in 1959. Prof. Lansing predicted a definite pick-up in gross private capi- tal investment, through increases in business spending and new home construction, and an end to inventory liquidation. This year may also see the return of normal employment, Prof. Lansing said. He estimated a possible drop to 2.2 million unemployed throughout the country. Unemployment Drop Seen The survey, however, reached a conservative unemployment fig- ure of 3.8 million, one million below the projected 1958 total. Minimizing the threat of inflation, two economists agreed with the survey that there will be no significant rise in consumer prices. The survey average was an approximate one per cent increase in the consumers price index.{ Robert W. Storer and M. Dutton Morehouse, speaking in a panel discussion, both said that fears of inflation may have been exagger- ated. Price Level Seen 'Stable' "The price level over the next few years will be relatively stable," Morehouse declared. He added that monetary policy will have an effect on inflationary control through more tax collections, budget reductions and the financing of part of the national debt outsidet the federal banking system. Outlining the consumer's position, Prof. George Katona of the economics and psychology departments said he did not expect an' actual boom in consumer spending. Prof. Katona heads the econmic program of the University's Survey Research Center., National income, while higher now than at this time last year, has not increased enough to compensate for large advances in pro- ductivity, he said. Increased prices and population were also consid- ered factors in minimizing consumer buying, as was changes in family income. More Famlies Discouraged Prof. Katona explained there were proportionally fewer families with rising incomes encouraging them to spend more, and at the same time proportionally more families with declining profits were therefore discouraged from buying. These figures, he reported, were1 based on SRC's last survey, and that more information would be announced shortly. The automobile industry can look forward to substantial gains, Prof. Katona noted. The "cherished dream of becoming a two-car family" may come true for many families, he said. Contributing to this possibility is a lighter overall consumer debt, fewer families with relatively new cars, and an improved attitude toward prices. There is less tendency to feel that automobile costs are rising, Prof. Katona said. In another important consumer area, Willard D. Arant forecast a "moderate" decrease in the cost of food because of an expected decrease in farm prices. This, however, will be counteracted by the rising cost of food processing and distribution. Farm Abundance Predicted "The agricultural outlook for 1959 is one of abundance," Arant said. But whether abundance is profitable for farmers or not de- pends on whether a particular commodity "is supported by the gov" ernment, and the nature of that support. If a commodity is not sup- ported, it depends on the elasticity of demand." On the business front, the survey prognostication called for a healthy increase in corporate profits. Predicted was a jump from 1958's $32.2 billion to an anticipated $39 billion in 1958. Edmund A. Mennis, speaking as part of the morning's panel, pre- dicted a 25 per cent corporate profits hike. particularly in those in* dustries which bore the brunt of the original downtrend. Among these Mennis lists automobiles, textiles, steel, chemicals, metals and ma- chinery. 25 he "A substantial gain in the automobile industry" weights Mennis per cent figure. "If automobiles are excluded from the sample,' explained. "the indicated gain is 18 per cent." Mennis also agreed in essence with the survey's predictions for the stock market. Consensus of the survey indicated a small gain in the index of stock prices, from 48.96 to 50.21. "An upward trend in common stock prices seems probable," Mennis said, "although not necessarily at the rate of the past five months." Other Gains Seen In other predictions, the survey said the index of industrial production would show a sharp increase, from 133 last year to 146 in 1959; the corporate bond yield would jump from 4:16 per cent to 4:40 per cent; average hourly earnings in manufacturing would rise from $2.12 to $2.20: and gross private domestic investment would rise from 52.0 to 58.5. Panelist Avram Kisselgoff, however, disagreed with predictions of increases in spending for plant and equipment, one of the com- ponents of gross domestic investment. And he said he "wouldn't be surprised to see housing (another part of this figure) start to de- cline under the impact of higher interest rates. On the other hand, Prof. John Lindner of Harvard's graduate business administration school, predicted that private capital forma- tion might reach $68 or $69 billion. He saw specific increases in business inventories and private construction. GAMBLING SITUATION DISCUSSED See Page 4 Lie 43aU I~aitr 4 FAIR, WARMER Sixty-Eight Years of Editorial Freedom VOL, LxIX, No. 42 ANN ARBOR, MICHIGAN, TUESDAY, NOVEMBER 4, 1958 U.S. OTES TOD LYe DE OCR TS FIVE CENTS FAI EIGHT PA ORITE Rockefeller Given Edge in New York Say Brown Favored over Knowland; See Easy Leader,. Lawrence Wins DY The Asaoclated, Press The angry words of a bitter campaign faded last night and it was left up to the voters: Will they gratify the sky high hopes of the Democrats, or surprise the experts with a Republican triumph? . In New York, a forecast of sunny skies and snow-free roads gave the Republicans increased hope that Nelson A. Rockefeller, the poll- sters' uneasy favorite, would oust Averell W. Harriman from New York's gubernatorial cljir. Four years ago, the Republicans said snow upstate was a major factor in Harriman's slim victory, California's Republican Gov. Goodwin Knight, who reluctantly decided to run for the Senate when Sen. William Knowland chose to * * * * Dem ocrats * * Pre dic t * * * * * * Victory in Stte <+i ' Work Law' Hot Issue In Six States WASHINGTON () - Opposing sides in the red-hot right-to-work fight carry the issue to voters in six states today with neither side too certain of the outcome. Voters in California, Ohio, Kan- sas, Colorado, Idaho and Washing- ton will decide on adopting state bans against employer-union con- tract agreement that include the union shop and other forms of compulsory union membership. William T. Harrison, executive secretary of the National Right- To-Work Committee, declined to predict the outcome in any state but said: "I think we'll get our share of them-the silent vote is going to confuse a lot of folks." Jack Redding, director of the National Counc*l on Industrial Peace, opposed the right-to-work proposals, said he endorsed the estimate of former Republican Gov. Fred Hall of Kansas that the issue is in doubt in Kansas but will be defeated in the five other states. "We'll stand or fall on whether our people and the labor people get out the vote," Redding said. Eighteen states already have right-to-work laws in effect. All except Indiana are largely agri- cultural states in the South and WeSt. Both advocates and opponents of the right-to-work proposals up in the six states said they expected the closest voting in Ohio, Kansas and Idaho. Batista's Man Leads in Cuba HAVANA (T) - Former Premier' Andres Rvern Aie'ron the Bastist.a Utry for the governorship, has re- fused to say that he will even vote for Knowland. Knowland is seen as an under- dog to Democrat Edmund G. (Pat) Brown. In Pennsylvania, David L. Law- rence, serving an unprecedented fourth term as Pittsburgh's mayor, Is the Democratic candi- date for governor. He is opposed by a Republican political novice, Arthur G. McGonigle. The state constitution forbids a governor to succeed himself. But Demeratic Gov. George M. Leader is in the fight anyway. He is his party's choice for the vacant Sen- ate seat. Leader is opposed by Rep. Hugh Scott. In Ohio, three questions stand out: Shall Republican Gov. C. Wil- lam O'Neill be re-elected to a four-year term or shall he be re- placed by Democrat Michael V. Disalle? Shall GOP Sen. John W. Brick- er be returned to a third six-year term. RENEWAL: Objections Received By PHILIP MUNCK City Council last night heard more objection to the Urban Re- newal plan in Ann Arbor. Two letters, one from Paul Mc- Coy and another from Mary Brown, residents of the 75-acre plot in north-central Ann Arbor, protested the plan. McCoy warned against the in-a trusion of the federal government into local areas as a long-range result of the project. He said that even the govern- ment funds contributed by the United States was not sufficient reason to let federal influence ex- tend into local affairs. He also aecused the Council of planning to rezone the Urban Re- newal area residential without re- gard for the feelings of businesses in the district. In other business, the Council received a report from the Huron River Watershed Intergovernmen- tal Committee on the current state of efforts to co-ordinate use of the watershed area. Wallace Bowman said the Com- mittee plans to hear bids from three engineering firms on the possibility of conducting an ex- tensive engineering study of means of controlling the water shed. WASHINGTON (-) - The Air Force is about ready to fire an- other rocket at the moon. Its chances of reaching the moon's vicinity were described as "something less than 1 in 25." Hugh L. Dryden, Deputy Chief of the National Aeronautics and Space Administration (NASA), Budget Cuts U' Lectures University audiences will hear fewer guest lectures this year due to the University's budget cut, Erich A. Walter, assistant to the president, said yesterday. The University will concentrate on maintaining the same quality in Its lectures, which means that quantity must suffer, he said. Seventeen lectures have been planned so far this year, slightly behind the total scheduled at this time last year. The guest lecture budget was reduced 10 per cent this year, in line with general University cuts, Walter said. Guest lectures are usually schol- ars from another school who are invited by the University to speak on their field. The lecturers re- ceive a small fee from the Uni- versity. TO AIM FOR MOON: Air Force Prepares To Fire Rocket announced the shoot will be made within a week or so. Success-Level Cited The lunar probe will be a suc- cess if the instrumented nose of the rocket completes its 240,000- mile journey into space and goes into orbit for two or three turns. around the moon. But the space scientists would be gratified if the rocket apprached within 25,000 to 40,000 miles of the moon. In putting the chances of reaching the vicinity of the tar- get at 25-1, Dryden cautioned against any great optimism about the shoot, the third in an Air, Force 'series. "If we are very fortunate, we may achieve trajectory and velo- city control suficient to position the probe in the vicinity of the moon," he said at a news con- ference. To Use Thor{ The moon ship will be an 88- foot combination of Thor ballis- tic missiles, the Navy's Vanguard satellite launcher, and upper stage rockets propelled by a powerful solid fuel' world ANews1 Williams, Bagwell Battle In Governorship Race Dispute State Industry, Labor Influence; Potter-Hart Senatorial Race in Doubt By BARTON HUTHWAITE Michigan's political campaign drew to a close this morning w the Democratic party optimistically predicting a sweep of all at offices. But Republican party leaders have promised an upset when t final ballot count is in sometime early tomorrow morning. Neil Staebler, Democratic state chairman, forecast a comforta 300,000-vote margin for Gov. G. Mennen Williams in the state's gub natorial race. Federal Air Group Created WASHINGTON M)-A new gov- ernment unit with vast powers over civil and military air traffic -the Federal Aviation Agency-- came into being yesterday. Its first action, by order of President Dwight D. Eisenhower, was to take over the airways mod- ernization board and its 200 em- ployes. i . - - ,. t . JORDAN HALL SECOND: Pi Phi's 'Tide' Comes In; Wins Lanter ound 'Faces Vote-Getter Battling the largest vote-getter in Michigan's history is the GC gubernatorial hopeful Paul D. Bagwell, a Michigan State Univer By The Associated Press professor turned politician, rated. GENEV - Te Unied S as the underdog in the fight against Cl GENEVA -- The United States labor-backed Gov. Williams, and Russia introduced rival agen- The governor has centered his as yestrhayrgeshthatree-residenft DwtD nuclear conference, focusing their charges hat Presdent moight )onFor District sharp differences of view on the Eisenhower and GOP policy-mak- timetable for stopping nuclear ers are responsible for Michigan's ts. economic woes. H ouse Stresses Economy TAIPEI-Red Chinese guns fell With an eye on the presidential silent today after pounding Que- nomination in 1960, Gov. Williams moy and the Tan islands yester- has blasted the Republican admin- Ten local contests are on day with one of the heaviest istration and called an end the day's ballot in Washtenaw Co bombardments of the Formosa "Eisenhower recession." ty, as local voters go to the pc Strait war. The GOP candidate's chief tar- Partly cloudy skies and sligh get is United Auto Workers Presi-warmer temperatures are fore. WASHINGTON - The United dent Walter P. Reuther. Bagwell by the weatherbureau, with so States, it was learned yesterday, has blamed the "Williams-Reu- rain anticipated later this ev is prepared to share some of its ther" coalition for the state's sag- rain radar secrets with Russia if pro- ging economy. gress is made on an agreement to Probably the closest state con- Highlighting the election Is1 prevent surprise attack, test is the Sen. Charles E. Potter- contest for United States C Lt. Gov. Philip A. Hart scramble. gress, with Republican incumi Hart has pinned his hopes on GeorgeMeaderseeking re-elect Gov. Williams' ability to convince against Democrat Robert G. H Michigan that the recent economic The county will also fill recession is the fault of the Eisen- three offices in the State Legi '.3-I hower administration. ~ ture. The 33rd DIstrict (W.sl Opposing Hart is 41-year-'old naw County) seat in the St Sen. Potter. With 11 years on Con- Senate is being contested byI gress behind him, Sen. Potter has publican incumbent Lewis x called industry "primarily a state 'Christmnan and Democrat problem." Calling for a "sound ap- Thomas Law. proach to the problem" on the For the State House of Rep state level, Sen. Potter believes sentatives, the First District (s .: Gov, Williams should be held re- rounding Ann Arbor) will chb sponsible for the present plight of between current Rep. George recession-minded Michigan. Sallade, Republican, and Ann Favors Federal Aid Hodesh on the Democratic s Hart, in turn, is a strong believer In the Second District, (Ypsila in Federal Government assistance and outlying areas) Democ in solving the employment prob- Maurice Hoffman is trying tot lems caused by automation in the seat Republican Rep. James state's industrial centers. Warner. In the lower and less outspoken The race for County Sheriffy election campaigns, Secretary of Republican George A. Peter A#~~~j~~~ State James M. Hare is matched agis'eora arneF against a Republican unknown, tersdorf m Raymond A. Plank. Democratic State Treasurer San- In other county contests: ford A. Brown will face Allan G. Prosecuting Attorney: Democ Weatherwax in his quest for a Robert M. Gillespie opposesF : ' By MARY STATON P1 Beta Phi, vocalizing on "Just As the Tide Was Flowing," was chosen 1958 winner of the Lantern Night Sing at Hill Auditorium last night, Jordan Hall of Mosher-Jordan, now in Markley Hall, placed second with a rendition of "My Shadow." Phi Mu won third place with "Eternal Life." They were led by Arlene Grahl and Carolyn Burkman, respectively. This year's sing, breaking away from the traditional, was dedi- cated to all new women students on campus and was moved to the Fall semester schedule so that more houses would be able to partici- pate. Win Silver Cup As in former years, a silver loving cup was presented to song leader Karen Taylor by Women's Athletic Association president Norma Clark. W.A.A. sponsors the yearly event, and the athletic department in turn presents an inscribed cup to the sing winner. The club also awards a posture cup and this years' winner was Alpha Phi. Second place went to Gamma Phi Beta and Phi Mu took third place honors. to oun oll htl Tas Om' ven th on Hal: be1 it sla hte tat Re C C pre sur. ett ide pant ccra un, pit rsex lra Re s A.. ', $....... .... ..,