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August 09, 1963 - Image 1

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Michigan Daily, 1963-08-09

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See Editorial Page


a1itr 31U


Partly cloudy
with chance of rain

Seventy-Two Years of Editorial Freedom

XIII, No. 33-S




Hatcher Asks Passage of Bill
Members of the congressional delegation received letters from };
niversity President Harlan Hatcher this week urging them to vote
favor of the $1.135 billion three-year school aid bill.
The bill would provide matching grants and loans for college
Lsroom and laboratory construction.
The House Rules Committee yesterday cleared the bill for
>use consideration next week. An important part of President John <"

Romney Pledges NO

Tax Raise

. rail talks

Se.ek Accord
On Railroads
WASHINGTON (P)-The labor
department began yesterday a new
drive for agreement on the make-
up of train crews-one of two key
issues in the long deadlocked rail-
road work rules dispute.
Asst, Secretary of Labor James
J. Reynolds scheduled a new series
of meetings between the two sides
in an intensive campaign to iron
out a possible settlement plan on
at least the train crew issue by
next Tuesday. The other key is-
sue involves the railroads' plans
to eliminate the jobs of over 30,-
000 egneers.
"We will meet to see if it is
possible to accomplish tentative
agreements to present to general
for ratification," Reynolds told
chairmen of the firemen's unions
Much Meeting'
Reynolds has been meeting al-
most constantly, along with Sec-
retary of Labor W. Willard Wirtz,
during the last three days to sift
item-by-item all phases of the
crew makeup issue with train
crew union leaders. These are the
unions whose members operate the
trains outside the docomotive.
Their day-long sessions have
proceeded while Congress marked
time on a Kennedy Administration
istrike-halting" plan to turn over
the dispute to the Interstate Com-
merce Commission for solution
prior to Aug. 29.
That date is the deadline now
set, after a series of postpone-
ments, for the -carriers to invoke
inate thousands of rail jobs that
'new work rules which would elim-
the carriers consider unnecessary.
Five operating unions are on rec-
ord as ready to strike the moment
the work rules are applied.
Another Session Monday
Culmination of the new meet-
ings announced by Reynolds will
come in another all-day session
with carriers and union represen-
tatives next Monday. This will be
just prior to the assembling here
on Tuesday of 156 general chair-
men of the AFL-CIO Brother-
hood of Locomotive Firemen and
Reynolds at the same time re-
vealed that the bulky firemen s
committee, to arrive from all parts
of the country, was summoned on
the suggestion of the carriers.
Previously, firemen's union lead-
ers had said they called the ses-
Ssion on the urging of Wirtz.
Reynolds said the carriers want
the firemen's general chairmen's
committee on hand so that ratifi-
cation by that union of any pos-
sible settlement can be immediate
Denies Rumor
On Hungary
WASHINGTON (M) - Despite
State Department denials, a firm
belief prevailed in diplomatic cir-
cles yesterday that the United
States and Communist Hungary
1 will resume full relations, probably
by the end of this summer.

F. Kennedy's education program,
the bill was the second school aid
committee in as many weeks.
Speaker John McCormick (D-
Mass) said the "House would con-
sider the bricks and mortar" col-
lege aid bill Tuesday.
Substantial Aid
President Hatcher's letter said
the University expects "substan-
tial" state aid for expansion of its
academic facilities within the
next year or two.
"If the University could also
obtain through this bill matching
funds from the federal govern-
ment, it would provide a very sub-
stantial supplement to the state
money and would enable the state
to proceed with vitally needed en-
largement -of facilities for higher
education," he said.
President Hatcher's letter was
prompted by a request from the
AmericanCouncil of Higher Edu-
-cation that the University seek to
encourage Michigan congressmen
to vote for the bill's passage, Ex-
ecutive Vice-President Marvin L.
Niehuss said. He said the Univer-
sity often seeks support from
congressmen on measures which
would particularly affect the Uni-
Obstacles to Passage
Two obstacles could prevent
easy passage of the bill. Its pro-
vision for direct federal grants to
private and church-connected as
well as publicly-financed colleges
may set off a full debate over the
separation of church and state
This dispute had a part in the
final defeat of a similar bill last
year, although it would be a more
serious issue in the Senate than
in the House.
The other possible controversy
is school segregation. It is almost
certain that House Republicans
will try to attach an anti-segrega-
tion amendment to the bill, as
they attempted to do without suc-
cess on the vocational bill.
Rebuke Rights Riders
House Democratic leaders feel
that no legislation which includes
civil rights riders can get through
the Senate; they will fight to keep,
the so-called "Powell amendment"
of f the college bill.
The Democrats have argued
that the main Kennedy civil rights
bill would provide ample authority
to bar federal aid to colleges that
practice racial discrimination and
that their Senate colleagues would
not try to fight a Southern fili-
buster on the college aid bill too.
House Keeps
Current Level
On :Debt Limit'
defeated soaudly yesterday a Re-
publican effort to trim the tem-
porary national debt ceiling by $2
billion and voted to keep it at
$309 billion through Nov. 3.
The GOP members pegged their
fight to a contention that a re-
duction would be an economy
mandate to Congress while it still
is considering spending bills.
Democrats belittled the idea, say-
ing what is involved is paying bills
already incurred.

. . . letters to Congress

Study Asks
New Rules
WASHINGTON (M)-A special
committee of the Securities and
Exchange Commission urged yes-
terday a tightening of industry
controls in almost every phase of
stock trading and sharply rapped
some mutual funds' dealings with
brokers and the public.
The special study group finished
its two-year investigation of the
securities industry by detailing re-
visions which its said are needed
in the so-called self-regulating
mechanisms, the stock exchanges
and trade organizations.
There was no evidence of ma-
nipulation or illegal conduct in
the steep drop in stock prices in
May 1962, the report said, and no
single factor could be singled out
as a reason for the decline.
Conclusions Coincide
The conclusion was the same as
that of a recent New York Stock
Exchange study.
Most of the proposals in the
1,700-page third and final install-
ment of the SEC study could be
put into effect at any time by the
industry, or by the SEC.
In New York, a spokesman for
the New York Stock Exchange
said the entire report is under
study and that meanwhile "we feel
it still would not be appropriate to
make any comment." Likewise, an
official of the American Stock
Exchange said "the entire SEC re-
port is being given careful, con-
stant and continuing study."
Stocks Stay Steady
Stock prices dipped in immediate
response to release of the two pre-
vious installments of the SEC
special study report, but yesterday
they held -steady, and then rose
In a letter to Congress, the SEC
gave a general endorsement of the'
6,400-page report.
The commission said there are
no definite plans for new legisla-
tion other than a non-controver-
sial-but important-bill which
has passed the Senate, and a pro-1
posal for tighter controls on over-
the-counter stock price quotations.
This recommendation will be sent
to Congress next year.
The study group previously had
said there is no widespread fraud
in the industry but that consider-
able cleanup is needed to close
some loopholes and provide proper
protection for the nation's 17 mil-
lion stockholders.

Cuts Ceiling
On Spending
$30 Million
Hopes Fund Stability
May Speed Reforins
By The Associated Press
ing previous positions, Gov. George
Romney declared yesterday that
he will ask the Legislature at the
special session starting September
11 to adopt a fiscal reform pro-
gram that will not mean any in-
crease in revenue.
Romney told the Republican
leadership in both houses and
members of their tax committees
that he hopes to set a spending
limit of $580 million in next year's
general fund budget, instead of
$610 million previously predicted.
"I would hope that the people of
Michigan would be more inclined
to support tax reform if they knew
that the level of state taxes would
not increase," Romney declared.
Shies from Specifics
He declined to specifically list
areas where savings can be achiev-
He pointed to $10 million that
could be saved through greater ef-
ficiency and indicated that other
savings could 'be achieved in the
state's liquor monopoly, through
contracting for janitorial services
and by reducing the number of
state employes.
Romney said the state should
encourage local governments and
school districts to hold down
spending "by setting a good exam-
ple for them."
Stress Reform Need
The governor and legislative
leaders stressed the need for fiscal
reform even with spending held at
near-current levels, but comments
of legislators indicate a wide di-
vergence of opinion on fiscal re-
Senators Garry Brown (R-
Schoolcraft) and Emil Lockwood
(R-St. Louis) jolted the governor
with a proposal for a five per
cent income tax balanced by a 30
per cent reduction in local prop-
erty taxes.
Romney remarked that the sen-
ators had not conferred with him
and that he is still studying local
option tax plans.
Set Local Limits
Sen. Clyde Geerlings (R-Hol-
land), chairman of the key Sen-
ate taxation committee, warned
that the Legislature must define
or limit the power of local govern-
ment and school boards to raise
taxes. -
"The new constitution which will
take effect Jan. 1, gives cities un-
limited power to tax income," he
pointed out. "We've got to deal
with that."
Speaker of the House Allison
Green (R-Kingston) declared that
'an income tax is not inevitable.
We could change the business ac-
tivities tax so it bears more on
profits and less on jobs. At present
it comes 70 per cent from payrolls
and 30 per cent from profits."
Two to Try Tax
Sen. William G. Milliken (R-
Traverse City) said, "I think we
will try for an income tax," and
Rep. Gilbert E. Bursley (R-Ann
Arbor) committed himself to such
a method.
Romney will not detail his tax
plan until Sept. 11.













34 Nations
First Day
U.S., Britain, Russia
Look for Best Effect
WASHINGTON (M)-Nearly one-
third of the world subscribed to
the limited atomic test-ban treaty
yesterday on the first day it was
open for general signing.
Diplomats queued up in Wash-
ington, London and Moscow for
the honor of pledging their gov-
ernments as associated charter
members of the United States-
British-Soviet pact to outlaw all
nuclear explosions except those
under ground.
Allowing for many duplications,
the day's total of signatories came
to 34, making a total of 37, count-
ing the originators who signed
last Monday.
Expect 100 Signatures
The state department said 62
of the world's 114 nations already
have announced their intention to
sign and more than 100 are ex-
pected to do so eventually. The
treaty, which is open to all states,
is expected to pick up more sig-
natures today and tomorrow.
All three of the nuclear signers
:figure that the pact will be of
maximum effectiveness if the max-
imum number- of nations join.
They therefore named each of
their capitals as repositories for
the treaty, to get around the dif-
ficulties of gaining adherence by
governments which are not uni-
versally recognized.
Not Binding Yet
No one is yet bound by the
treaty, because it does not take
effect until the three original sig-
natories ratify. As the signings
were going on, President John F.
Kennedy sent the United States
Senate the treaty, accompanied
by a message asking for speedy
After the treaty has been rati-
fied by the Big Three, other na-
tions can adhere to it by submit-
ting instruments of ratification to
any of the three treaty-keepers,
state department legal experts
Notably absent from yesterday's
signings were Red China and
France, both of which have scorn-.
ed the treaty and served notice
they intend to proceed with their
independent nuclear , Programs.
Meanwhile, Secretary of State
Dean Rusk arrived at the Russian
Black Sea vacation coast yester-
day for a farewell meeting with
Soviet Premier Nikita S. Khrush-

NEIGHBORS-Haiti's President Francois Duvalier (left) and
Dominican Republic's President Juan Bosch uneasily share the
island of Hispaniola. Currently, the Dominican Republic is
housing stragglers from the apparently unsuccessful Haitian
Duvalier Regime Claims
Rout of Invasion Force
PORT AU PRINCE (91)-President Francois Duvalier's regime
appeared yesterday to be restoring its control over the northeast area
invaded by Haitian exiles early this week..
Haiti's Telledoil--creole for rumor circuit-still spoke of fighting
in the north between government forces and rebels trying to bring
down the Duvalier regime. But there was no confirmation from any





World VNews
By The Associated Press
BOGOTA-Ex-dictator Gustavo
Rojas Pinilla, sought for 36 hours
on a charge of plotting to seize
the government, was arrested at a
hideout in northern Bogota yester-
day, security officers announced.
* *, *
tic Senators suggested today that
the Vinited States and the Soviet
Union should team up for peace-
ful exploration of outer space, in-
cluding the moon. Sen. Joseph S.
Clark (Penn) said in a statement
that the two nations should match
each other dollar for dollar in
space projects.
* * *
NEW YORK-The stork market
dropped slightly, then recovered
in moderate trading yesterday. The
Dow-Jones averages showed 30
industrials up .26, 20 railroads
down .52, 15 utilities down .03 and
65 stocks down .14.

"source, and signs mounted that
northeast Haiti was returning to-
A United States-owned oil com-
pany resumed operations there
and American evacuees started
back to their jobs near the scene
of the reported fighting.
Confirm Claims
Reports from the neighboring
Dominican Republic tended to
confirm the Duvalier government's
claim to have dispersed the rebels
into Dominican territory.
Maj. Gen. Victor V. Roman,
Dominican armed forces minister,
announced in Santo Domingo that
four Haitian army officers who
admitted taking part in the inva-
sion had crossed into Dominican
territory and asked for political
He did not identify the four,
but said the Haitian rebel leader,
Gen. Leon Cantave, was not
among them. At least 15 Haitian
officers are reported to have taken
part in the invasion.
Speak of Stragglers
Reports reaching SantoDomin-
go from Dajabon, a town on the
Dominican side of the border with
Haiti, also spoke of stragglers
crossing into Dominican territory.
But Haiti's Tellediol still spoke
of fighting' in the north, although
less extravagantly than before.
A spokesman for the oil com-
pany said its two bulk plants near
Fort Liberte now were working
normally. He said his information
tended to confirm the govern-
ment's claims that only a hit-and-
run force had been involved.
Report Rebel Retreat
(The Miami News reported two
travelers in the Cap Haitien area
said Gen. Leon Cantave and a
band of 15 landed in Haiti Mon-,
day morning and retreated at
about 2 p.m. A Port au Prince dis-
patch to the newspaper said the
invaders stole two automobiles,
drove to Fort Liberte, killed a
soldier on guard duty and then
left the country.)
The Haitian government placed
the number of invaders at 100 and
exiled Haitians at several times
that figure.
Americans who were evacuated
to Cap Haitien from a sisal plan-
tation in the Fort Liberte area
also were reported going back to
their jobs today.
The government yesterday re-

Receive Plea
For Passage
Of Document
President Urges U.S.
To 'Move Swiftly'
Toward Ratification
WASHINGTON () - President
John F. Kennedy sent the limited
test ban treaty to the Senate yes-
terday with a call for speedy ap-
proval "to make the most of the
present opportunity ... to achieve
a more secure and peaceful world."
In a 10-point message, Kennedy
said the security of the United
States and of all mankind would
be increased by adoption of the
proposed ban on nuclear testing
in the atmosphere, in space and
under water.
While the President formally
submitted the United States-
British-Soviet treaty to the Sen-
ate, nearly one-third of the 114
other nations of the world were
signing it inceremonies in Wash-
ington, Moscow and London.
Line Up To Sign
At the state department envoys
from 31 states queued up to sign
the treaty and more are due in
tomorrow and Friday.
Ratification by the Senate is
the key to whether the treaty will
take effect. Ratification is deemed
automatic in Russia and Britain,
but the treaty does not take effect
until all three original signatories
Kennedy Administration author-
ities seem confident the Senate
will approve by the required two-
thirds majority of those voting.
Committee hearings , start next
Monday and a final vote is expect-
ed after floor debate in Septem-
Don't Miss Out
In his 1,500-word message ac-
companying the short treaty docu-
ment, Kennedy said:
"It is rarely possible to recap-
ture missed opportunities to
achieve a more secure and peace-
ful world . . the United States
should move swiftly to make the
most of the present opportunity
and approve the pending treaty."
He said the United States has
and will continue to have the
nuclear strike-back power to deter
an enemy attack. He said there
has been no change, because of
recent testing, in the atomic ba-
ance of power which United States
authorities say is in favor of the
United States.
Sneak Tests Unprofitable
While some party to the treaty
might conceivably try a sneak at-
mospheric test, he said the risks
of that country's getting caught
"outweigh the potential gains
from a violation and the risk to
the United States from such vio-
lation is outweighed by the risk
of a continued unlimited nuclear
arms race."
The treaty is to be policed by
existing means of spotting nuclear
explosions. The means include air
sampling, acoustical and electronic
devices and intelligence.
Kennedy sought also to point
out that Republicans as well as
Democrats have been committed
to the- test-ban proposition in the
past. He noted that the treay
"grows out of the proposal made
by President Dwight D. Eisen-
hower in 1959" and a Senate-
passed resolution that year, and
said it also "carries out the ex-
plicit pledges contained in the
platforms of both parties in 1960."
Payoff for Effort
"This treaty is the first concerte
result of 18 years of effort by the
United States to impose limits on

National Defense Education Act Aids Many Projects

In the four years of its exist-
ence, the National Defense Edu-
cation Act has provided for the
bolstering of many facets of edu-
cation from elementary school to
graduate study, in every state of
the union and some territories.
The NDEA was established in
1958 and "is based on the premise
that every American should have
the opportunity- to develop his
skills and competencies to the
fullest extent and that only in
this way can the nation develop
trained manpower and insure the
leadership essential for the pres-
ervation of democracy," according
to the NDEA report for fiscal
vavo e1481 an 1O9

The United States Office of Ed-
ucation has administrative respon-
sibility of all but one of the nine
titles of the act.
Colleges and universities bene-
fit primarily from three titles of
the NDEA. Under title IV, Nation-
al Defense Fellowships, graduate

fellows may receive a stipend each
year for periods of study not ex-
ceeding 3 years. The fellowships
are awarded by the type of pro-
gram being studied, which must be
either a new program or one that
has been expanded. The act pro-
vides that persons interested in

teaching at institutions of higher
education be given preference in
the awarding of fellowships.
Social Sciences Lead
In academic years 1961-62 and
1962-63, the social sciences re-
ce'ed 27 and 25 per cent, re-
spectively, of the fellowships, more
than any other area.
Fifteen hundred National De-
fense graduate fellowships were
awarded both in fiscal year 1961
and 1962. The University was
awarded 21 fellowships in 1962-63
under NDEA.
Appointments to 1963-64 fellow-
ships are available in the follow-
ing programs: development eco-
nomics, political behavior, compar-
ative education-Asian program, re-

was $470, and for 1962, it was $478.
In keeping with the act, most of
the loans were made to students
either preparing to teach in ele-
mentary or secondary schools, or
who had superior academic ability
or preparation in science, mathe-
matics, engineering or modern for-
eign languages.
Improve Language Teaching
The language development sec-
tion of NDEA seeks to improve the
teaching of those languages which
have been neglected, and which
are needed increasingly in busi-
ness, industry and government.
The federal government may pro-
vide up to 50 per cent of the cost
of establishing and operating a
language and area center within

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