SELLING STATE LAND NOT FISCAL ANSWER See Editorial Page ci 4c 131k ian 74Ead3J FAIR "191-78 Low-55 Skies clearing, cooler tonight 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 Y".v.:. .w..:.:.".: n .... w*o*Z 5:.