LEADERS IGNORE DISESTABLISHMENT See Editorial Page Y L a1itr 31U :4Iaiti4q WARM High-88 Low--63 Partly cloudy with chance of rain Seventy-Two Years of Editorial Freedom XIII, No. 33-S ANN ARBOR, MICHIGAN, FRIDAY, AUGUST 9, 1963 SEVEN CENTS FOUR PAGES OLLEGE AID: Hatcher Asks Passage of Bill By JEAN TENANDER 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 JAMES J. REYNOLDS . 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 newsmen. 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 Enginemen. 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- versity. 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 issue. 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' WASHINGTON (Ao)-The House 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. HARLAN HATCHER . . . letters to Congress SEC REPORT: 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 slightly. 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 MACKINAC ISLAND - Revers. 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- ed. 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- form. 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. <" *C * * * Senators Nuclear' To Review Treaty * Test P v 34 Nations Subscribe 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 ratification. 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 said. 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- chev. 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 invasion. 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 Roundup 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. * *, * WASHINGTON-Two Democra- 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- normal. 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 asylum. 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 ratify. 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- ber. 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 ACTIVE ON ALL LEVELS: National Defense Education Act Aids Many Projects By PATRICIA LEFTRIDGE 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 ..}.: : . «:. ' , I