Seventy-First Year EDITED AND MANAGED BY STUDENTS OF THE UNIVERSITY OF MICHIGAN "Where Opinions Are Free UNDER AUTHORITY OF BOARD IN CONTROL OF STUDENT PUBLICATIONS 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. FRIDAY, JUNE 30, 1961 NIGHT EDITOR: MICHAEL OLINICK FUrIEBOUIING UNNECESSARY: 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- mer. 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 inventories. 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 expand. * * * 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 daily. 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. -JUDITH OPPENHEIM "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 recovery. -George Shea Wall Street Journal (Copyright, 1961) Jungle 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 strength. "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 STATE: Lewis, Ladies, Laughs WHEN JERRY LEWIS and his 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 entertainment. 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 funny. 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 LETTERS to the EDITOR 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 Mal-Shot 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 river. 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 accidental. -J. OPPENHEIM 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 training. 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. -DAVID MARCUS 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. THESE HIGH SCHOOL JUNIORS, many of whom will be freshmen on this campus within a year, are not allowed off the premises MOSCOW COMMUNISTS: Berlin: Curious, Risky Maneuver By WILLIAM L. RYAN Associated Press News Analyst PERHAPS CONCLUDING it is 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- gotiation. 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. * * * KHRUSHCHEV'S MANEUVERS 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 East. 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. DAILY OFFICIAL BULLETIN 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 publication. FRIDAY, JUNE 30 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. Placement PERSONNEL REQUESTS: 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.