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Seventy-Two Years of Editorial Freedom
KIII, No. 35-S
ANN ARBOR, MICHIGAN, TUESDAY, AUGUST 13, 1963
SEVEN CENTS
FOUR PAGES
ECONOMIC RESEARCH:
Conboy Explains Fund Goals
By PHILIP SUTIN
Co-Editor
Within three to five years, every dollar invested by state in
economic expansion research must yield $1000 in goods and services,>:
University officials were told in Lansing yesterday by Bernard Con-
boy, director of the economic expansion department.
Outlining provisions for anw expectations of the $750,000 state
research fund for economic development research, Conboy stressed
the need for action and implementation from the very beginning *
?of the program. He spoke at a :
mneeting of officials from state-_ y
supported colleges and universities
convened to discuss the fund
created by the Legislature last
spring.
GILBERT BURSLEY
praises fund
REVERSAL:
Court Voids
School Suit
By The Associated Press
ROANOKE-The United States
Fourth Circuit Court of Appeals
yesterday reversed a federal dis-
'trict court order reopening public
' ch oos in Prince Edward County,
Va.
Prince Ediward schools have been
closed since 1959 to avoid their
desegregation under the United
States Supreme Court 'ruling of
1954. The appeals court in a' two-
one decision said the lower court
could not order the schools to re-
open until the Virginia supreme
court rules on state constitutional
questions.
Prince Edward's 1500 Negro
rchildren have been without reg-
ular school facilities since the
schools closed.
Block Machinery
In Chicago, police arrested 48
k Negro and white civil rights dem-
onst'ators yesterday on charges
of interfering with construction of
mobile classrooms for public school
children. Officials said the pickets
tried to block use of machinery.
The pickets were protesting al-
leged de facto racial segregation
of public schools, claiming children
enrolled in overcrowded South Side
schools could be accommodated in
less chowded schools in white
neighborhoods.
At East St. Louis, Ill., police ar-
rested 45 persons on disorderly
conduct charges after the ,pickets
stood, sat and lay in front of First
National Bank tellers' cages in pro-
test of alleged racial bias in hir-
ing. .
Union Discrimination
At Unity House, Pa., the AFL-
CIO announced Sunday an imme-
diate effort to end discrimination
in unions, first in Cincinnati and
probably in Washington and Bos-
ton later..
AFL-CIO President George Mea-
ny told a news conference a staff
committee would try to get local
trades union officials to enlist lo-
'cal citizens civil rights committees
to combat job bias.
At Tuscaloosa, Ala., Negro
James A. Hood, one of the two
Negroes who cracked the color line
at the University of Alabama last
spring, said yesterday he will seek
hospital care for physical and men-
tal treament.
Riusk Assures
Senate Hearing
on Ban Basis
WASHINGTON toP) - Secretary
of State Dean Rusk assured a
Senate hearing yesterday that the
limited nuclear test ban treaty is
not based "on trust of Russia."
He said it will not lull the
United States into relaxing its
vigilance.
As Rusk opened the administra-
tion's effort to win support of
two-thirds of the Senate for rati-
fication of the pact, several sen-
ators indicated he had dispelled
-rnmo ~ ~ o~ of +1 1 eam i£!m
Increase Total
Conboy pointed out that his de-
partment has set a goal of in-
creasing Michigan's total of goods
and services approximately $1
billion each year.
Rep. Gilbert Bursley (R-Ann
Arbor), chairman of the House
economic expansion committee
and sponsor of the fund last
spring, declared that the "partner-
ship" between the state and its
niversities for economic expansion
research is the first in the United
States and looked for a large re-
sponse to it.
Submit Proposals
He said that he hoped the
state's colleges and universities
would submit proposals worth sev-
eral million dollars although only
half of the fund's $750,000 would
be spent this year.
Individual proposals should
range from $5000 to $100,000, he
added. The fund would seek to ex-
pand research. It would not neces-
sarily support existing projects
over an extended period of time,
Bursley said.
Currently Restricted
He noted that the fund is cur-
rently restricted to state-supported
institutions, but could be expanded
to include the private ones.
Bursley predicted, that the Leg-
islature would act on initial rec-
ommendations by its special ses-
sion beginning Sept. 11. He said.
that Gov. George Romney would
submit requests for legislative ap-
proval in October. Under the law
setting up the fund, the Legisla-
ture must approve each project by
a joint resolution.
Executive Vice-President Mar-
vin L. Niehuss, a participant at
the session, said that the Uni-
versity is preparing proposals for
the fund.
Finance Publication
He noted that the fund could
support research already under-
way or finance publication of com-
pleted projects of pertinant in-
terest.
Niehuss cited University efforts
in economic expansion research,
especially that of Prof. W. Allen
Spivey of the business school and
Dean William Haber of the literary
college.
Prof. Spivey, also present at the
meeting, listed other University
projects including a survey of the
Michigan economy in 1975. He said
that this study is in the pilot
stage and is meant to draw con-
clusions rather than be an ex-
tensive study of the economy 12
years from now.
"I don't envy the job of the
economic expansion department,,"
Prof. Spivey said. "The only thing
tougher than making money is
giving money away efficiently."
MARVIN L. NIEHUSS
... University proposals
WORK RULE:
Rail Talks
Y ield, Little
WASHINGTON 0?) - Railroad
union leaders and carriers' rep-
resentatives talked long hours yes-
terday but were unsuccessful in
perfecting a formula to break the
deadlock in their work-rules dis-
pute.
Morning, afternoon and night
sessions were held.
Secretary of Labor W. Willard
Wirtz said after a two-hour night
meeting that no definite proposal
has been agreed upon.
Prolonged Talks
Key objective of the prolonged
talks was to round out some con-
crete proposal for presentation to
a 156-member delegation of fire-
men's union general chairmen due
here today from far corners of the
country.
But the outlook did not seem
optimistic as Wirtz emerged from
the night session.
"There still are significant is-
sues on which there is disagree-
ment," he said.
Additional Meetings
At the same time, however,
Wirtz said that additional meet-
ings with carrier representatives
and officials of the five operating
unions involved in the dispute will
be held today. He said no time had,
been set.
Last night's meetings followed
the pattern of morning and after-
noon sessions with the engine crew
unions-firemen and engineers-
meeting. with carrier representa-
tives and Wirtz, as government
mediator. At the same time, train
crew union officials met separ-
ately with labor department me-
diators.
Wirtz indicated no definite prog-
ress made in his final talk last
night with the engine crews but
said "different possibilities than
before" for settlement had been
discussed. He did not elaborate.
Bargaining, in an item-by-item
approach formulated by Wirtz, has
stayed within the limits of an area
laid down by the secretary more
than a week ago-that is, con-
forming to the firemen's job issue
and the issue of train crew make-
up.
CityHears
'Minority'
A rgument
By VAUGHN WALKER
"The churches a n d schools
which can alone bring about
social advancement provide the
only means of correction" of racial
discrimination, Republican third
ward Councilman Paul H. Johnson
said last night at the regular Ann
Arbor City Council meeting.
"Government regulation will
only intensify and magnify these
problems-not correct them."
Johnson, who submitted a min-
ority report to the council on the
work of the fair housing commit-
tee, said, "Pressure has been un-
paralled in efforts to secure a
(fair housing) bill." He indicated
that in the process the shortcom-
ings have been "glossed over" and
largely ignored.
No Organization
Noting that no organization
similar to the "Freedom Move-
ment," which supports the pro-
posed legislation, has arisen to
oppose the fair housing ordinance
at it has been proposed, Johnson
indicated that this represents a
breakdown in the normal legisla-
tive and democratic processes.
Intimidation and "fear of being
accused of withholding rights
from others" has accounted for
the lack of any opposing group to
arise, he said..
The report was designed to
stimulate discussion and debate in
the council on the fair housing
ordinance, Johnson said.
Unanimous Approval
Republican fourth ward Coun-
cilman Wendell Hulcher pointed
out that Johnson had concurred
in the fair housing committee's
unanimous approval of the pro-
posed ordinance.
Johnson posed three questions
concerning the ordinance. How
great is the need for housing legis-
lation in Ann Arbor? Are the de-
mands for legislation valid as ap-
plied to the excellent record in
the city? Finally, are the demands
for legislation a reflection of the
record in other communities to
equal the record established in
Ann Arbor?
"Much pressure was brought to
bear in March and April to pass
a housing ordinance. It was po-
litically inspired," Johnson said.
Admits Discrimination
Admitting the existence of dis-
crimination in Ann Arbor, John-
son noted that only 10 specific re-
fusals to sell or rent real estate
because of color have been re-
ported to the Human Relations
Council.
Lemar Miller, chairman of the
Ann Arbor Fair Housing Commit-
tee, said that Johnson had pointed
out in his minority report that
the HRC was powerless and that
Negroes could not be expected to
make complaints to a body that
was unable to satisfy their griev-
ances.
Of the five ordinances similar
to the one being considered in Ann
Arbor, Johnson said that one in
Berkeley, Calif., was defeated by
voters in a referendum, another
had been declared unconstitution-
al by two Ohio courts and the
other three were passed in New
York, Pittsburgh and Toledo.
Upholds Bill
Democratic first ward Council-
woman Eunice Burns said that the
Ohio Common Pleas Court had
upheld the Toledo ordinance, writ-
ing in its opinion that fair hous-
ing legislation was a responsible
use of police power for the general
benefit of all citizens. Hulcher
commented that the fair housing
committee did not indicate that
the courts would throw out the
ordinance as unconstitutional.
The council, on a motion by
Hulcher, approved public hearings
on the proposed ordinance on
Aug. 20 and 29.
SPACE MONEY:
Midwest States Get Small Slice
Dillon, Shows
House Unit
New Scheme
WASHINGTON-Only one-half
of one per cent of this fiscal year's
$5.5 billion national space outlay
will go to the four Midwestern
states of Illinoi" Indiana, Wiscon-
sin and Michigan, the Chicago
Tribune reported recently.
Iowa, whose Sen. Bourke B.
Hickenlooper (R-Iowa) is the
closest representation the region
has on the committee, will get
twice as much as the four states
combined.
However, Iowa will still get only
1.11 per cent of the total.
Many Factors
Officials of the National Aero-
nautics and Space Administra-
tion, who prepared the estimates,
and aides of the space committee
explained some of the many fac-
tors affecting the distribution of
f u n d s are meteorogical and
geographic conditions favoring
space experimentation, availabil-
ity of universities and industries
which can handle research and
development and the aggressive-
ness of business leaders in acquir-
ing the production and technical
capabilities necessary for the
work.
They said that California, which
will get 44 per cent of the con-
tract money, has very good weath-
er and geographic conditions.
Last Thursday, during floor de-
bate on the authorization of $5.5
billion for NASA next year, Sen.
Kenneth B. Keating (R-NY)
blasted the "unusually great im-
balance" in the distribution of
space contracts. He called for the
Radioactivity
Rate Doubles
WASHINGTON (P)-The Public
Health Service said Saturday the
amount of radioactive strontium
90 in the nation's milk as of May
this year was almost twice that
of a year ago.
The aveil daily level of stron-
tium 90 was 26 micromicrocuries
per liter of milk - 1.05 quarts -
compared with a May 1962 aver-
age of 14.
The Public Health Service fig-
ures, based on milk samples check-
ed at 62 stations Pcross the coun-
try, were in line with Federal
Radiation Council estimates made
on. May 31.
Soviet Tests
The council blamed the increas-
ed fallout levels largely on Soviet
nuclear testing which dumped
large ar' ounts of fallout materials
into the atmosphere last year.
The council has reported that
the Soviet Union's nuclear test
program in 1962 produced a total
yield of 180 megatons of explosive
capacity.
The United States conducted
tests in the Pacific last year with
a total yield of 37 megatons, of
which 16 megatons produced
radioactive fallout.
, Hea "ier Risk
The health service says that
73,00) micromicrocuries a year, at
an average rate of 200 a day, is
considered an acceptable health
risk.
Radioactive strontium 90, re-
leased by the nuclear tests in the
atmosphere, lodges in bone mar-
row and is believed to cause
cancer.
opening of more contracts to com-
petitive bidding.
Almost Impossible
Most authorities believe it is
almost impossible to form broad
policy which would change the
situation.
Congressional authorization and
appropriation bills must leave
most of the operations to the de-
scretion of the responsible agen-
cies, which are headed by presi-
dential appointees. Keating said
that little can be done to spread
the investments without substan-
tial efforts by NASA.
Individual programs, such as
the research center to be built in
Boston, become political issues.
The University had bid for the
center but had had lower priority.
Raised Storms
The Boston center raised storms
in committee and on the Senate
floor-but was never specifically
written into the authorization
law.
It was merely understood that
NASA administrators would put
the center in Boston unless the
Senate ordered them not to. Ef-
forts in the Senate to do so were
defeated.
Michigan's share of contracts
has fallen from $6.9 million in
1962 to $6.3 million this year, and
next year's NASA projections
show a drop Po $5.4 million.
Treasury Proposes Boost
Seeks Net Drop
Of $10.6 Billion
To Lift Economy
In Income
To Consider Investigation
Of Federal. Research Policy
WASHINGTON-The House.Rules Committee begins hearings to-
day on a proposal to investigate government-sponsored research pro-
grams, the Wall Street Journal reported.
The hearings are a result of worries over whether Congress, per-
haps beguiled by the fervor of the government's scientific planners, has
been overly indulgent in providing funds for the swift, continuing rise
in federal research spending.4
Also to be reviewed is the question of how well lawmakers can
evaluate projects such as a proposed study of the earth's gravitational
Tax Reduction
if
field, or a request for funds to -
try out a new fuel mixture in an
experimental atomic reactor.
Duplication of Effort
Finally, legislators are worried
about duplication of effort among
the many agencies that now ad-
minister federal research funds.
Committee members say they
decided to call for such a study
after wading through the maze of
defense, space and science research
spending r e q u e s ts channeled
through the rules committeeon
their way to the House floor for a
vote.
The proposal calls for establish-
ment of a special five-member
committee to undertake a year-
long study of all federal research
programs. The rapid rise in out-
lays for space exploration by the
National Aeronautics and Space
Administration would receive par-
ticularly close scrutiny.
WASHINGTON tom)-The treas-
ury proposed yesterday an ever
larger tax reduction than Presi-
dent John F. Kennedy suggested
in January.
First reaction to it by House tax
writers was said to be favorable.
Secretary of the Treasury Doug-
las Dillon submitted to the House
ways and means committee a pro-
posed new set of individual and
corporate tax rates that would
bring about a net reduction he
estimated at $10.6 billion, com-
pared with the $10.3 billion Ken-
nedy had outlined earlier. The re-
ductions would begin in January.
He said the tax cut is needed,
despite an economic pickup since
January, to "release the economy
from the shackles" of high taxes,
To Finish Work
The committee, at work for
months on an omnibus tax bill, i
expected to finish its work in
about a week.
Dillon's presentation was given
behind closed doors and the com-
mittee ordered it kept secret, but
copies of the material he used
were " made public later. They
show that the treasury recom-
mended:
1) A new schedule of personal
income tax rates ranging from 14
to 70 per cent, compared with the
present 20 to 91 per cent. For
taxpayers in what is now the
lowest bracket, this would mean a
22.5 per 'cent saving. For those
with taxable incomes below $60,-
000, the saving would average 15.5
per cent. In the top bracket the
saving would be 23 per cent.
Corporate Rate
2) A cut in the corporate rate
from the present 52 per cent to
48 per cent, including a special
break for smaller firms through
reduction of the rate on the first
$25,000 of income to 23 per cent,
against the present 30 per cent.
3) A schedule under which two-
thirds of the individual cut and a
bit more than half of the corpo-
rate cut would take effect Jan. 1,
1964 and the remainder one year
later.
The treasury estimted this
would amount to a saving of $6.5
billion to taxpayers during the
calendar year 1964. The total re-
duction when the new rates be-
come fully effective in 1965 was
estimated at $8.5 billion for indi-
vidual taxpayers, $2.1 billion for
corporations.
'Less Generous'
Dillon said his current proposals
are "slightly less generous" than
the President's original proposals
to individual taxpayers with in-
comes under $10,000. They would
rn r
Tax Bite
This table, according to the
Treasury Department, shows
what the proposed plan would
mean for a single person, who
claims the proposed 5 per cent
minimum standard deduction:
Tax Under Tax Under
Income Present Law Proposal
$1000 $ 60 $ 14
2000 240 161
3000 240 329
5000 818 671
7500 1,405 1,168
10,000 2,096 1,742
15,000 4,001 3,334
20,000 6,412 5,350
The following table, compiled
from Treasury figures, shows
what the new proposal ulti-
imately would mean for a mar-
ried taxpayer, with two depend-
ents, who takes the average
itemized deductions:
Tax Under Tax Under
Income Present Law Proposal
$5000 $ 300 $ 235
7500 720 576
10,000 1,196 994
15,000 2,213 1,875
World News Roundup
By The Associated Press
CARCAS-A special airplane was reported leaving here last
night to pick up ex-dictator Marcos Perez Jimenez in Miami and
return him to Caracas for trial on charges of embezzling millions
of dollars in public funds. Soon after Secretary of State Dean Rusk
reported in Washington that he would approve Jimenez' extradition,
Venezuelan officials started working out details for bring the
exiled dictator back to Venezue-+
Question Ability
Critics of the investigation ques-
tion whether any committee of
Congress, least of all a new one, is
equipped to assess scientific under-
takings and weed out the less'
promising projects. "The magni-
tude of the job is too great for one
small committee to/ accomplish
much unless it builds up a very
large and very competent staff,"
Chet Holifield, chairman of the
Atomic Energy Commission, says.
"There's a lot of talk about elim-
inating duplication, but this new
committee would only make for
more by overlapping well-estab-
lished responsibilities," a ranking
member of the Armed Services
Committee said.
Chairman George- P. Miller of
the House S p a c e Committee
agrees: "If they know where to
obtain the scientific know-how for
such a study, I wish they would
tell me. That has been our prob-
lem all along-finding men who
know science to give an impartial
evaluation of research proposals."
Stiff Opposition
Against this stiff opposition,
backers of the investigation reckon
they stand no better than an even
chance of getting full House ap-
proval.
But even if defeated, they think
their proposal is crystalizing House
sentiment for tighter legislative
reins on the research agencies.
Moreover, some House Space
Committee members look favorably
toward a Senate-passed bill setting
up a federal commission on science
and technology. The panel would
seek better coordination between
government agencies.
The House committee has pre-
viously paid little heed to the
Senate bill.
SaazrAtae
DEAN WILLIAM HABER
... unemployment
Haber. Cites
Blas i n Jobs
The minority group that will be
most discriminated against in em-
ployment in the future will be
composed of the uneducated and
untrained rather than persons of
any particular race, or religion,
Dean William Haber of the literary
college said recently.'
The inadequately educated have
little chance of sustained employ-
ment, he said; a high school di-
ploma has become an indispensable
application form for almost any
kind of position.
The best way to protect the
population against the ravages of
change taking place in . today's
world is to provide the kind of
education that makes adaptability
easy, Dean Haber said.
Sufficient Priority
"The real challenge facing us is
that we don't give education suf-
ficient priority. We should. If we
don't, we will compound the prob-
lem."
Dean Haber emphasized, how-
ever, that there were no easy
solutions.
For the immediate future he
suggested these steps:
1) A vigorous program to do
something about school dropouts,
perhaps through incentives suob
as scholarships for continued
training.
College Oriented?
2) A hard look at what is going
on in high schools. Why are they
unattractive to many young
people? Are they oriented too much
toward future college students
Ia.
SEOUL-An official of South
Korea's military government de-
fended as "a necessary step" yes-
terday the arrest of retired Lt.
Gen. Song Yo-Chan, a former
premier and outspoken foe of mili-
tary rule. Opposition charged the
arrest was politically inspired.
* * *
LONDON-A French nuclear
test may be conducted under-
ground soon in the Sahara, the
London Daily Telegraph reported'
from Algiers today. The report
said tons of scientific equipment
are being hurriedly assembled and
sent in convoys of trucks to a
remote camn in the mountains.
Finals End Summer Life
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