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June 30, 1961 - Image 2

Resource type:
Michigan Daily, 1961-06-30

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Seventy-First Year
Truth Will Prevail STUDENT PUBLICATIONS BLDG. " ANN ARBOR, MICH. " Phone NO 2-3241
Editorials printed in The Michigan Daily express the individual opinions of staff writers
or the editors. This must be noted in all reprints.

Economic Recovery Underway

Drug Companies:
Unjust Tac tics, Profits

BY A CURIOUS form of reverse
logic, some observers of the
business scene are expressing dis-
appointment at what they regard
as the slowness of the current re-
covery from the 1960-61 recession.
And it is quite likely that they
are going to feel even more dis-
appointed before the end of sum-
Yet actually the recovery so far
is moving along pretty well. The
rise in the Federal Reserve Board's
indev of industrial production, for
the first two months following the
low reached in January-March, is
a substantial six points or almost
6 per cent. Another rise in June
as big as that of May would put
the index back to the record high
of January, 1960.
It is true, as the doubters say,
that unemployment continues at
the recession high. But that has
happened before in the early
months of recoveries from reces-
sions. In 1958, when the produc-
tion index hit bottom in April,
the unemployment rate-the per-
centage of the labor force out of,
work-continued to increase for
three months.

LIKEWISE it is true that retail
sales, after recovering in March
from their low levels of January
and February, seem to have since
then remained only about steady
instead of increasing further. But
that, too, has happened before. In
1958, retail sales turned up in
April, one month ahead of produc-
tion, but production continued to
rise substantially for three months
more, while retail volume barely
crept upward for the three months
following its first upturn.
Inventory figures and projec-
tions of capital spending by the
nation's industries are also cited
as disappointing. There was an in-
crease in business inventories in
April and some analysts say they'd
like it better if production were
rising to satisfy demand rather
than for buildup of inventories.
However, declines in bank lending
figures for May and early June
suggest that the April inventory
increase was only a temporary
one, and that business has been
able since then to pay off loans as
a result of renewed sales out of
Nor should it be regarded as

ominous that capital spending
plans for the second half of 1961,
according to Government surveys,
had not increased in April and
May above those already planned
in mid-winter. Upturns in capital
spending following recessions are
always delayed for months after
industrial production begins to
* * *
ANALYSIS of what bothers the
worriers shows that they are sim-
ply worrying too early. If the con-
ditions they cite were those of six
or eight months after the start of
recovery, they would have a much
better basis for their forebodings.
Apparently there are two reasons
for their attitude.
Some of them seemingly are
continuing their effort of some
months past to minimize the
strength of business, in the hope
of persuading Congress to adopt
their ideas for various kinds of
extra government spending.
The other reason seems to be a
more subtle one, associated with
the fact that the present upturn
in business has gained general rec-

HEATED ARGUMENT among members of
the Senate antitrust and monopoly sub-
committee over the profits big manufacturing
companies have been "reaping from the public"
could conceivably develop into a full scale
fight over socialized medicine next week.
The subcommittee will start hearings Wed-
nesday on a bill by Sen. Estes Kefauver (D-
Tenn) to place the drug manufacturing indus-
try under tight new federal controls.
Democrats on the subcommittee charge the
drug companies' annual profits have been "ex-
traordinary." Republican members claim the
majority report is a "prejudiced, unfair 500-
page monstrosity." Regardless of the exact de-
gree of profit-making, it is a fact that com-
petition among the big pharmaceutical houses
raises the price of drugs far above what the
public ought to pay for them.
VERY FEW DRUGS are manufactured ex-
clusively by one company. Medical ethics
require that important findings be made pub-
lic, a discovery such as the Salk polio vaccine is
put into mass production as quickly as possible
by nearly all of the big companies.
Every drug firm sells essentially the same
products. Yet they spend an astronomical sum
in annual advertising calculated to prove that
their company's athlete's foot ointment is more
potent that their rivals'.
It has been estimated that companies spend
thousands of dollars a' year per doctor on ad-
vertising. Their ads range from full-page ex-
travagantly colored displays in medical jour-
nals to every conceivable kind of gimmick.
Doctors' offices boast leather-bound calen-
dars, handsome pen and pencil sets, duo de-
cahedronal paper-weights and transparent plas-
tic people through whose veins courses the
latest panacea for heart-disease control.
And. an endless supply of half and quarter-
sized "physician's samples" of drugs is cheer-
fully supplied by pharmaceutical houses rep-

resentatives who haunt medical office buildings
ALL THIS costs a fantastic sum-paid by the
consumer who buys brand-name drugs. If
a physician can give his patient a prescription
for a drug listed by its generic name rather,
than the brand name of one of the companies,
the druggist fills the prescription with chemi-
cals he has on hand. He obtains these chemi-
cals at low rates because he buys in quantity
and can sell them much more cheaply than the
brand name drugs.
There is no reason why the consumer should
ever be forced to pay prices above the value of
the chemicals used because of advertising by
the drug company.
He is not paying for quality, because there
is virtually no difference between the drugs
different pharmaceutical houses manufacture
for the same symptoms.
He is paying so that the companies can af-
ford to try to convince him and his doctors
that one brand is better than another.
THIS, OF COURSE, is the way capitalism
works-and it may be arlgued in some in-
stances that it leads to better products and
greater research incentive.
But this is not the case with the drug com-
panies. Since real discoveries are shared uni-
versally it is rare when one company has an
effective drug another does not manufacture.
If all drug companies were merged under
government control or if they were to operate
with minimal advertising, the price of drugs
could be greatly reduced. Part of the money
saved could be used to advance research. Drug
quality could continue to rise while the cost to
the consumer would be drastically reduced.
A measure such as this would be a good first
step in a plan for state-sponsored medicine
which could increase medical benefits for the
entire country at considerably less than their
present cost.

"I've Got the Happy-Days-Are-Here-Again Blues"

ognition unusually early. Normal-
ly in the past, turns in business
have not been known about until
months after they had begun. The
most recent example was that last
fall, five and even six months
after business had turned down,
many commentators refused to
admit that a recession was under
way. In much the same fashion,
it has been common after previ-
ous recessions for most observers
to assume the trend was still down
for months after it had turned
up. The usual course was that gen-
eral recognition was given the up-
turn only when all major indica-
tors had joined the rising trend.
The result may well be a men-
tal tendency to invert the logic
and to demand that all or most
of the economic statistics be on
the way up just as they were on
previous occasion when the ob-
server recognized the existence of
a business recovery.
FURTHERMORE, this tendency
may actually be aggravated for
a while this summer. Although to-
tal production of steel in June
may exceed last month's, mill
operations actually have leveled
off in the last couple of weeks a
bit below their recent high, fol-
lowing three months of steady ad-
vances. And the word from steel
centers is thatJuly output will be
down some more, in accordance
with the usual summer lull.
Though such a lull would not
lower the Reserve Board's pro-
duction index if it is of no more
than seasonal amount, it would
tend for a while to prevent the
index from continuing its recent
rise. In addition, auto manufac-
turers are going to stop produc-
tion on old models, for the annual
change-over to new ones, sooner
than in previous years, and that
will tend to lower the general pro-
duction index until they get into
stride on the new models.
But the course of recoveries,
like the course of -true love, is
rarely smooth. Hesitations lasting
one or more months are common,
and after a rebound as sharp as
that of the last two months in in-
dustrial production, some hesita-
tion or even a slight retreat would
not be surprising. Certainly it
should not be taken as a reason
for despair about the strength of
business or its chances for further
-George Shea
Wall Street Journal
(Copyright, 1961)
War fare
"THE PROBLEMS of American-
Russian relations are not
really soluble in the existing frame
of reference. By this I mean the
system which divides the planet
into sovereign nation states know-
ing no law but their own will and
no protection but their own
"Man may be on the verge of
visiting the stars but he still lives
in a jungle. Armies, spies and the
constant need for keeping people
mobilized with fear and hatred
are the pillars of the nation state
system. Can Russia trust us and
our allies not to spy out her se-
crets, or we trust them not to spy
out ours? . . . How can we stop
testing and devising new mon-
sters of destruction lest they steal
a march on us and come up with
some new whooper-dooper?
"Given such a world, how can
the rest of mankind expect to
make effective protest if Ameri-
cans and Russians again pollute
the skies, the seas and the earth
with radioactivity, or chew up
huge quantities of basic metals
on vast military and spatial toys

while millions of fellow creatures
are lucky to have a wooden plow?"
-I. F. Stone

Private School Aid

singing partner Dean Martin
broke up their successful team
and went their separate, but tal-
ented ways, it was Lewis who ap-
peared obsessed with the idea of
accomplishment in every form of
He devoted his talents to the
producing, writing and directing
of movies as well as acting. He
recorded popular songs. In short,
he did everything to place the
name of Jerry Lewis before the
public. His latest attempt, "The
Ladies' Man", fals.to impress the
audience with either his comedy
or his other managerial and
creative abilities.
Following in the story pattern
of his other recent film creations,
Lewis isucast ashthe poor, bum-
bling, but good-hearted weakling'
who finally finds love. This same
plot for every one of his one-man
shows leaves a staleness that suc-
cessful comedy cannot have.
And then, too, he over-indulges
in grimaces and over-emphasizes
the purely ridiculous gestures and
movements. There are also few
clever moments of artistic comedy
in this cinema opus.
The story centers around Lewis
as a junior college graduate (Mill-
town JC) who loses his best girl
to an athlete at graduation and
vows never to have anything to
do with women again. He leaves
town and finally finds a job as a
houseboy i Helen Traubel's home
where bevies of beautiful girls
also reside. From then on, the
action becomes episodic, climax-
ing in the usual Lewis fashion.
The set used as Miss Traubela's
home is fabulously beautiful as
are the residents of said set. Shot
in technicolor, beauty abounds.
The absolute fantasy of the film
gives the viewer the impression
that Lewis (Herbert Herbert Her-
bert) will wake up at the end and
find it all a dream. Harry James
orchestra provides a pleasantly
brassy musical background and
the band puts in an appearance in
one of the fantasy dance scenes
that Lewis runs through.
One especially humorous scene
occurs when a program similar to
"Person to Person" visits the home
to interview Miss Traubel and
Lewis ends up by stealing all the
scenes, rather indicative of the'
movie as a whole.
At times, Lewis' comedy is ex-
tremely funny, especially a scene
with guest star Jerry Lester. The
problem is that he tries to carry
the whole show and is just not
funny enough to do it.
Kathleen Freeman turns in an
excellent job as the comedy sup-
port for Lewis. And of course Miss
Traubel, who turned from con-
tralto to comedienne, is also quite
The picture makes for a pleas-
ant way to spend two hours in
the summer, but hardly will rank
as one of the outstanding comedies
of the year.
-Michael Burns
to the
Freedom Rides .
To the Editor:
JUST ONE small question: What
can the self-styled "Freedom

Riders hope to gain by continuing
their rides into the Deep South?.
If their goal was to show that
there is still segregation in the
South and that work still needs
to be done there, then they have
succeeded. If their goal was to
bring about integration in the
South, it is evident that a) they
picked the wrong method and b)
that continuing the ride will not
achieve this goal. In fact, it will
do just the opposite by creating
more hate and distrust between
the races and sections.
If their goal is to create violence
and hate thru their "non-violent"
action, then thishis exactly what
they will do if they continue the
ride. It is the ONLY thing they
can hope to do by continuing. I
therefore suggest that the "Free-
dom Riders" be satisfied with what
they have done and return home
quietly. If they continue it will
only prove that they have no
worthwhile motive. If they con-
tinue they will indicate that the
accusations of Southerners are
correct, that they are only out
to act as rabble-rousers and to
get publicity. Should they con-
tinue they will give Southerners
justification to use any non-
violent methods to drive these and
all other troublemaking carpet-
baggers out of the South.
-Richard Leary
Global War

CONGRESS SHOULD NOT grant aid to pri-
vate schools. Although most of these in-
stitutions are religious, it is not a question of
separation of church and state. Rather, it is
a question of the nature of private schools,
motivations for attending them, and false
reasoning as to the results one expects from
paying taxes.
Private school educators complain that their
schools relieve a burden on the public schools,
yet parents whose children attend them are
still forced to pay taxes for the support of
public schools from which they receive no
benefit. Why should private schools not re-
ceive federal aid for the teaching of secular
subjects which may generate skills that could.
be of benefit to the nation as a whole?
First of all, their argument concerning school
taxes is invalid. Elderly people with grown
children, single persons and childless couples
all pay school taxes. A family with ten chil-
dren may easily pay as much as a family
with one child. School taxes should be thought
of as supporting a community service-like the
ANEW HOPE for world peace may be seen in
the fact that rockets will blast across the
Rio Grande this morning carrying mail from
the United States to Mexico.
This is the second time such a feat has been
attempted. The last "postal-shot" was July 2,
1936 when an American Legion post fired six
rockets, carrying about 2,000 letters across the
Some highlights of that momentous. shot in-
cluded one rocket hitting a saloon in Reynosa,
Mexico and one blamed for setting a corn
field afire.
If the United States and Russia could start
sending their mail to each other via rocket the
problem of nuclear testing could be eliminated
once and for all. Instead of stockpiling weap-
ons, the two feuding nations could race to
outdo each other in the development of inter-
continental-ballistic mailpouches.
Goal of the race could be to see which coun-
try is first to drop a nose-cone bearing a nasty
note on the roof of the other's capitol build-
ing. Saloons, cornfields and munitions factories
set ablaze on the way would of course be purely
Editorial Staff
MICHAEL BURNS .......................... Co-Editor
SUSAN FARRELL .......................... Co-Editor
DAVE KIMBALL ........................ Sports Editor
RUTH EVENHUIS ...................... Night Editor
MICHAEL OLINICK ................... Night Editor'

fire or police department-which may never
serve a particular individual but which bene-
fits the community, the nation, and some
particular people. School taxes are simply
not conceived on a "pay for what you (im-
mediately and personally) get" basis. The
system may be unfair, but it would be un-
just to make an adjustment for one group
without making similar adjustments for others.
NEXT, there is the question of why people
send their children to private schools.
There are two obvious ones: 1) because the
education is better or 2) because they want'
their children to receive instruction in a cer-
tain atmosphere.'
In the first case, which includes a few prep
schools, there is no need for federal aid. They
are attended and supported by the wealthy.
But, in sending their child to a parochial
school, parents are saying they want him edu-
cated in a religious atmosphere-which is cer-
tainly the prerogative of the parents. If private
schools were to receive aid from the federal
government-which would have to be specifi-
cally earmarked--there would undoubtedly be
a strict government supervision of funds that
does not occur in public schools. For in a
public school any operating expense is a legiti-
mate use of public funds..But parochial schools
would have to be closely supervised since only
part of their operating expenses could be
considered legitimate uses of such money.
Further, the government would have to watch
closely that parochial schools did not use
federal money to free other funds for religious
BY ASKING for federal aid, parochial schools
are asking for controls. If these controls
result in the isolation of religion from the rest
of the curriculum, the basic concept of a
religious school has been destroyed. And gov-
ernment funds clearly should not be used to
support a religious atmosphere.
irls' State
THERE IS STRONG and commendable em-
phasis on the development of responsibility,
leadership, civic awareness and active participa-
tion in the processes of government in the
Wolverine Girls' State program. In fact, ac-
cording to the president of Girl's State (and
a member of the Women's Auxilliary of the
American Legion which sponsors it), the pur-
pose of the ten day workship in government
is "to provide citizenship training" for the high
school juniors who attend.
whom will be freshmen on this campus
within a year, are not allowed off the premises

Berlin: Curious, Risky Maneuver

Associated Press News Analyst
too risky to assume the United
States is bluffing on the Berlin
issue, Nikita Khrushchev appears
to be seeking a face-saving way
out of an uncomfortable situation
-and trying to salvage some profit
from it.
The curious coincidence of Ken-
nedy and Khrushchev statements
on the same day concerning the
West Berlin issue raises specula-
tion about backstage diplomacy
looking toward some sort of ne-
But from President Kennedy the
Soviet leader has nothing more
tangible than a statement that the
United States is ready to discuss
any proposals that protect the
rights of the people in West Ber-
lin, isolated 110 miles inside Com-
munist East Germany. The Presi-
dent has a little more from
Khrushchev: an implication that
there is something to negotiate
and a statement denying any plans
for a new Berlin blockade.
* * *
must be viewed against his plans
and problems.
His plans include convening late
in October the 22nd Congress of
the Soviet Communist Party.
There the Kremlin expects to lay
down a 20-year program-a model
for the whole Red bloc-for the
development of Soviet and world
Communism. Moscow is asserting
undisputed leadership in this re-
spect. The October congress will
attempt to present Soviet-brand
Communism to the world as the in-
exorable wave of the future.
To demonstrate the Communist
movement's growing economic,

signs of sticking stubbornly to-
gether. Berlin represents an even
more menacing prospect, but on
the basic principle-the Western
Allies' rights in Berlin-the Ameri-
cans, British and French have re-
mained inflexible.
* * *
THIS MEANS Khrushchev is
approaching his all-important Oc-
tober meeting with his prestige
laid on the line. He has vowed to
drive the Western allies out of
Berlin by signing a one-sided peace
treaty with East Germany and as-
signing authority over access to
Berlin to East Germany. In this
he could travel to the brink of
World War III-at the risk of
stumbling over the line-or he
could retreat. Either prospect
would be unpleasant.
Khrushchev's words Wednesday
-even salted with tough remarks
-had the ring of an appeal to
Kennedy to recognize his dilemma.
With his prestige at stake, he
would like to deliver at least a
token result from his repeated
Berlin threats. Perhaps it could be
as little as Western recognition
of official East Berlin stamps
on bills of lading for supplies to
the Allied garrisons in West Berlin.
But to some in the West that
would be the first step toward full
recognition of the East German
regime and the first Communist
success in their long range drive
to choke off West Berlin.
KHRUSHCHEV has his own
problems. He has just about man-
aged to ram his views on world
Communist development down the
throats of Red China's leaders. In
return for additional Soviet eco-
nomic and techincal aid, the Red
rOhnPC. annpnrt r.!. nth+ fifP.-n_

throat. It provides a glaring con-
tradiction to the boast he will
present to the October congress in
Moscow that capitalism is in the
final stage of decline. West Berlin
also provides a haven for an end-
less flow of refugees from Com-
munism streaming in from the
Political surgeon Khrushchev
wants to get that bone out of
Communism's throat. But appar-
ently is fully aware it is a dan-
gerous operation.


The Daily Official Bulletin is an
official publication of The Univer-
sity of Michigan for which The
Michigan Daily assumes no editorial
responsibility. Notices should be
sent in TYPEWRITTEN form to
Room 3519 Administration Building,
before 2 p.m., two days preceding
General Notices
University Libraries will close at 5
p.m., Mon., July 3, and will remain
closed on INDEPENDENCE DAY, Tues.,
July 4.
College of Literature, Science and the
Arts and Schools of Business Adminis-
tration, Education, Music, Natural Re-
sources, Nursing, and Public Health:
Students who received marks of I, X or
'no report' at the end of their last
semester orrsummer session of attend-
ance will receive a grade of "E"' in
the course or courses unless this work
is made up. In the College of Litera-
ture, Science, and the Arts and the
Schools of Music and Nursing this date
is by July 24. In the Schools of Busi-
ness Administration, Education, Natur-
al Resources, and Public Health this

June ;0, 8:30 p.m. in the Rackham Lec-
ture Hall. Miss Greer will present the
compositions of Arne, Ravel, Debussy,
Montsalvatge, Turin, Orrego - Salas,
Trucco, Butterworth, Villa-Lobos and
Sandoval. Open to the public.
Events Saturday
Doctoral Examination for Darwin Wil-
liam Daicoff, Economics; thesis: "The
Capitalization of the Property Tax,"
Sat., July 1, 2A Economics Bldg., at 9:30
a.m. Chairman, H. E. Brazer.
Dow Chemical Co., Midland, Mich.-
Personnel Assistant-WOMAN; MA pre-
ferred, BA satisfactory. Work involves
orientation, recruiting, trng., dept. vis-
its, etc. Minimum age 25 yrs., some ex-
per. desirable. Excellent starting salary
-Aug. or Sept. opening.
Argonne National Lab., Argonne, Ill.
-Personnel Representative BS in
Prod. Mgmt. or BBA. MBA in Indust.
Rels. required in lieu of personnel ex-
perience (1-.2 yrs.). Various phases of
personnel administration. Lab operated
by Univ. of Chicago. Man; at least 25
yrs. old.
Acushn,et Pr.nsC .n wN e Baford.

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