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June 30, 1962 - Image 1

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Michigan Daily, 1962-06-30

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See Page 2


Seventy-One Years of Editorial Freedom


Warm, partly cloudy;
Chance of light rain.






Court Move Stalls
Vote on Con-Con
High Tribunal Agrees To Hear
November Election Decision Appeal
The State Supreme Court yesterday granted Attorney General
Frank Kelley's application to appeal an Ingham Circuit Court decision
on the proposed constitution, killing any possibility that it will appear
on the November ballot.
nBy agreeing to hear the appeal of a refusal to dismiss a petition
for a declaration of rights which would put the document on the

Pass Fa





--. . . . . *

::...:...."" ................................... .

Ask Support
Of Algerian
'Free' Vote
ALGIERS (W) - The European
Secret Army Organization yester-
day, dramatically poined with its
former Moslem enemies to urge an
overwhelming vote for Algerian in-
dependence in tomorrow's self-de-
termination referendum.
"I ask you to have confidence
in the future," Secret Army leader
Jean-Jacques Susini said in a
clandestine radio broadcast report-
ed to Algiers' European population
Susini, one of the main organ-
izers of the European terrorist net-
work, called for a 'yes' vote for
an '"Algeria of courage, progress
and brotherhood."
"We should construct this coun-
try with all those who have given
us their hand," Susini declared.
Meanwhile feverish preparations
were under way to set up an esti-
mated 6,500 polling stations for
Algeria's six million voters reg-
istered for the crucial referendum,
They will go to the polls' to an-
swer one question: "Do you want
Algeria, to become an independent
state in cooperation with France?'
Observers said the expected 'yes
answer might go as high as 99
per cent of the vote.
Susini hailed his peace pact with
Moslem nationalists, announced
June 17. as "recognition of our
combat, guarantee of our rights."
Many Europeans have decided
to stay and face the future in a
Moslem-run Algeria.
In Oran, former bastion of Eu-
ropean resistance to Algeria's in-
dependence, triumphant Moslems
chanted nationalist slogans after
removing some of the barbed wire
that has been separating their
areas from the European city.
French troops who have been
guarding Moslem areas from Eu-
ropean attacks slowly withdrew to-
ward the European city.
Group Urges
Tax Reduction
By Congress
WASHINGTON (o)-New pres-
sure for immediate tax cuts came
yesterday from the United States
Chamber of Commerce, which out-
lined what it termed a program
of massive aid for the economy.
The chamber proposed quick re-
ductions totaling $5.5 to $7.5 bil-
lion all along the line in corpora-
tion and income taxes, with the
biggest cuts in upper income
Putting off such action, the
chamber warned "not only courts
the disaster of a recession in the
United States but its spread to
Canada" and hte rest of the free
In the Senate, assistant Demo-
cratic leader Hubert H. Humphre3
(D-Minn) renewed his urging for
a tax, cut now, saying he saw no
reason to wait until next year.
Among the chamber's proposal
1) Cutting the top bracket indi-
vidual income tax rate from 91 to
65 per cent;
2) Splitting the lowest individua
bracket and imposing a 15 per
cent rate on the lower portion,
However, the present 20 per cent
would apply on the second $1,000
of taxable income;
3) Adjusting all in-between ratee
proportionately; and
4) Reducing the corporation rate
from 52 to 47 per cent.

"Reduction of personal incomE
taxes will increase take-home pal
and hopefully reduce the pressurE

< November ballot, the state Su-
preme Court' delayed any final
decision until after the Aug. 8
deadline for the November ballot.
Technically, the appeal could
take several months. The state has
15 days to file a claim of appeal.
A 90-day period could then be
used to collect briefs from both
January Decision
Experts say a Supreme Court
- decision might be expected in
Commenting on the Supreme
Court decision, convention dele-
gate Richard Van Dusen (R-
Birmingham) said, "in the ab-
sence of a determination of the
Slegal questions there is no choice
for the convention but to recog-
nize the April date.
"We can't afford to take a
- chance on specifying a November
- submission and finding out it
- can't be submitted then," Van
rDusen said.
s ANovember vote would only
have been possible, according to
Kelley, if the convention had com-
pleted its work by April 2.
November Vote
Majority Republicans in the
convention had agreed to seek
r a November referendum on the
new document. They argued that
submission should be as soon as
possible and at an election where
a large turnout of voters could
be expected.
"As to the adoption of the pro-
posed constitution, I doubt that
the appeal has any significance,"
Van Dusen said. "As to the avail-
ability of the new constitution to
rebuild the state it delays that a
r Edward Hutchinson (R-Fen-
ville), a convention delegate, felt
r that the new document would not
be able to be placed on the No-
vember ballot.
Gubernatorial Issue
Hutchinson felt that regardless
of whether the constitution is on
the fall ballot, it will still be an
issue in the gubernatorial cam-
"If Romney wins the fall elec-
tions, the new constitution will be
passed by the voters in April. If
Swainson wins the governorship
then the new document will fail,"
he concluded.
Melvin Nord (D-Detroit), an-
other convention delegate, had
wanted the new constitution to be
on the November ballot but realiz-
ed that this wasn't possible.
Not in Favor
"I was not in favor of the suit
and I feel that Attorney General
Kelley's appeal is 100 per cent
correct," he said.
Nord was optomistic about the
chances for a defeat of the new
s document even if it appears in
_ April in spite of the fact that the
Democrats usually have a weak
turnout at that time.
"If there is a vote on the new
constitution after some months
- have passed, and it is not mixed up
in the gubernatorial campaign,
more time will probably be taken
to review the document. In this
case more people will take an ob-
s jective view of its contents and,
as a result, there will be less en-
thusiasm for it," Nord concluded.

... believes in prayer
Prayer .Bill
WASHINGTON (P) - Chairman
James O. Eastland (D-Miss) of
the Senate Judiciary Committee
introduced yesterday a constitu-
tional amendment he said would
"completely nullify both the ef-
fect and implication" of the Unit-
ed States Supreme Court's prayer
His double-barrelled proposal
also would alleviate in part what
he called "the awesome conse-
quences" of another Supreme
Court ruling Monday which over-
turned a Post Office ban on mail-
ing of three magazines the Post-
master General declared obscene
Eastland was joined in offering
the amendment by Senators Olin
D. Johnston (D-SC) and John L.
McClellan (D-Ark), both members
of the Judiciary Committee. and
Sen. Herman Talmadge (D-Ga).
Javits Comments
Earlier, Sen. Jacob K. Javits (R-
NY), a former Attorney General
of New York, said that in his
judgment the Court's decision bar-
ring official prayers in public
schools is "much narrower in its
scope than the public debate about
it suggests."
What the Court held, Javits
said, is that "the state or Federal
governments are prohibited from
prescribing by law 'any particular
form of prayer which is to be
used as an official prayer in car-
rying on any program of govern-
mentally sponsored religious activ-
ity' "
The Mind of a Child
Eastland asserted that "in the
minds of little children not versed
in the intricacies of law," the
Court's decision might well create
"the fixed impression that the act
of praying to God is in itself un-
constitutional wherever the prayer
might be uttered."
. Most of his Senate speech, how-
ever, was directed to the Court's
ruling in the obscene literature
Expect Israel
To Deport Spy
JERUSALEM (R)-Speedy de-
portation seemed yesterday to be
in store for Dr. Robert A. Soblen,
the bail-jumping Soviet spy who
sought asylum in Israel from life
imprisonment in the United
Israeli newspapers urged that
Soblen be ousted. Several papers
cited his presence as a potential
irritant in relations between Wash-
ington and Jerusalem.

Research Yes Hig 'Prof its
By GERALD STORCH market conditions, can place times in 1953, 1958 and 1961,
It is Jan. 15,195 their savings in common stocks values did decline by more than
the amount invested dur ing the
Two professors, with $91,000 and "with some assurance" ex- amount
to spend, select 91 industrial pect to receive an adequate div- ye tud a ho d that
issues which traded well on the idend, along, wi min the common stock investment
1936 stock market, and proceed ty returned greater profits than
ouly eundpoista , hgetrtinvest $1000 each.ouly
Theinvest $1,000 each. ou ay. average stock issue was did comparable investments in
wrpa-worth$27,577 when the men bonds. At the end of 1960, the
uary 15 of the next 11 years, re- wrh$757we h e
the iends as wel "sold out" Jan. 15, 1961. Each , stock portfolio was 73 per cent{
investing investment contained a $15,917 ahead of bond accruements.
as the basic $1,000 into each basic outlay ($1,000 invested 12 Continued Study
And btimes, plus the five per cent Eitemans' research was a con-
ed byt$1,317,2-with an aver- compound interest), yielding a tinuation of a similar study
er 1.2per cn com profit of $11,660 on each issue, made from 1937-50, in which
pounedunnpually not considering inflation, the master list of stocks com-
The most lucrative invest- prised the 91 issues that achiev-
Sort-of Investors ment (White Motor Co.) finish- ed a trading volume of one mil-
The "investors" were in fact ed with a $60,831 yield, while lion or more shares during 1936.
Prof. Wilford J. Eiteman of the Studebaker-Packard Corp. did But the current 'study, of
business administration school, Studebaker-PackardrCorp. did
and Dean S. Eiteman of York the worst with an $8,253 total. PROF. WILFORD J. EITEMAN course, ended before the de
. n Da S itmn fYokNever- Fell' Below - - . investigates investment bacles which have plagued the
(Pa) Junior College. They were sagging stock market as of late.
really performing research on At no time during the 1950-61 The lowest of the classifica- Asked how the present mar-
the probable yield one can ex- span did the market value of Tions was worth $19,700, while ket situation would affect find-
pect from investing in a port- the holdings fall below the the highest $33,575. Both fig- ings in his monograph, Prof.
folio of common stocks, "se- amount invested. oe elaoetebekee Eiteman did some quick calcu-:
lected and purchased mechan- To make further inquiry into ure well above the break-even ins,and reported that the
ically, without recourse to ad- the yields one might expect point.raverage profit would still be 11
::. vice analysis, statistical infor- more or less automatically, the Explains Attractionper cent (three per cent below
mation, hunches. rumors, tips, authors subdivided the 91 issues As to the attraction of com- the average in the book) if he
knowledge of market positions, into nine portfolios, based on mon stocks as a protection were to have sold out last Fri-
or trend tochniques." random sampling. against inflation, the authors day instead of in 1961.
Their findings are reported in One portfolio was composed found that such protection He pointed out that "what the
"Common Stock Values and of every other issue on the list, "does not come from invest- market has lost lately has been<
Yields, 1950-61," a monograph another portfolio of every third ment per se, but is a byproduct what it had gained since the
recently published by the Bu- issue, and so on. Of the nine of a persistent program of per- study ended. When we conclud-
reau of Business Research. portfolios, there was no startl- iodic accumulation." ed the research, the Dow-Jonest
Their principal conclusion ing variance from the normal Over the long-range period, average was about 630, and it
was that small investors, even $27.577 value at the end of the the values of the 91 stocks rose was higher than that on Fri-
with a limited knowledge of study. well above inflation, but at day."
... ....:::.f."...::::: f. ..::t::.:"... 1.:. is "..i t: :: :titi'i:::


Present Bipartisan Health Bill

WASHINGTON (1P) - A bipar-
tisan plan for health care for the
aged financed under Social Secur-
ity was unveiled in the Senate
yesterday and appeared to attract
enough support to pass that body.
Five Republican Senators joined
18 Democrats in co-sponsoringthe
new proposal, worked out after
weeks of intensive conferences.
This in itself showed a consider-
able voting gain for the new bill.
Only one Republican voted for a
Social Security health care plan
when it was offered to the Senate
by then Sen. John F. Kennedy (D-
Mass) in 1960 and defeated 51 to
Reveals Details
Sen. Clinton P. Anderson (D-
NM) chief Senate sponsor of Ken-
nedy's health care plan and one
of those seeking a compromise,
told the Senate of its details and
declared the time has arrived "to
provide an effective program of
protection for the nation's elderly
Sen. Hubert H. Humphrey (D-
Minn) assistant Democratic leader,
said "this proposal can and will be
passed by the Senate and the
Sen. Jacob K. Javits (R-NY),
one of the Republicans most ac-
tive in the negotiations, said he
regards the compromise as "an
historic step."

The key points of the com-
promise are:
1) It would be financed by an
increase in Social Security pay-
roll taxes.
2) The benefits would be the
same as under the administration
bill on which Kennedy has been
urging action - hospitalization,
nursing home care, home health
services and outpatient hospital
diagnostic services.
3) The estimated 2.5 -million
people not covered by Social Se-
curity would be given the benefits
of the program along with the 15
million expected to be under So-
cial Security or railroad retirement

by 1964 when the plan would take
Substitution Possible
4) An option would be provided
under which a beneficiary could
elect to take his payments through
a private health insurance plan
instead of the Social Security ad-
Despite confidence of sponsors
that they now have votes to spare
in the Senate, it seemed ques-
tionable the plan could clear the
House this year.
The House Ways and Means
Committee has been struggling
with the issue since last session,
but a majority of its members
appear to be lined up against any
Social Security health plan.

Congo Talk
Causes Alert
Secretary-General U Thant said
yesterday he had placed United
Nations forces in the Congo on the
alert as the result of a new crisis
caused bya breakdown in Congo
unity talks.
In a statement to a meeting of
his 19-nation Congo advisory com-
mittee, Thant said he might call
the Security Council into session to
consider strengthening the United
Nations hand in the Congo.
Congo Premier Cyrille Adoula
and Katanga President Moise
Tshombe broke off Tuesday their
long talks on. bringing Katanga
province back into the Congo.
Set No Date
Thant told his committee this
created "a new critical phase for
the UN operation in the Congo."
"It is, I think, a bit early to at-
tempt to draw any conclusions as
to the significance of the failure
of the Leopoldville talks to end in
agreement," he said. "There is no
provision for their resumption but
we will press for them to do so.
"The decisive question, of course,
will be whether Mr. Tshombe and
his lieutenants will now undertake
to resume their secessionist ef-
forts. They may or may not."
Decisive Factor

Pay Raises'
To Enlarge Staff,
Number of Books
At 'U' Libraries
In a special meeting yesterday,
the Regents approved a general
funds budget of $49,997,157, With
approximately $3 million slated for
faculty and staff pay increases.
Another $160,000 will go for hir-
ing additional personnel for the
libraries and for new lib'rary books.
University President H a r a n
Hatcher emphasized, however, that
only minimum provision can be
made to hire more faculty mem-
bers even in academic areas where
there is critical shortage, and no
provision at all for additional re-
search and service personnel, sup-
plies and equipment.
Critical Salary Situation
"Because of the critical situa-
stion with salaries, we have budg-
eted the entire income from addi-
tional student fees and 85 per
cent ofsthe increase in legislative
appropriationsfor sfaculty and
staff salary increases," President
Hatcher's statement said.
Although terming it "a very
tight budget," Executive Vice-
President Marvin L. Niehuss said
that the faculty pay hike "will
maintain the University's position"
in relation to salaries at other
"The amount we received was
welcome, but we could have used
more money," Niehuss said.
Selective Increases
The salary boost will be allotted
on a basis of selective merit and
promotion, rather than across-the-
board. Determination of which
faculty members will get how much
of a pay hike will be made by
Niehuss after recommendations
from department chairmen and
There will be an increase of from
10 to 12 per cent in the number
of library workers. Niehuss noted
that the additional personnel are
needed to catalogue and classify
new books. Due to the necessity
for each book to be read, catalog-
ued and shelved, the cost for these
operations alone runs in excess of
six dollars per book.
"Each year we've been putting
in a larger share for library staff,"
Niehuss said, to improve the serv-
ices in this area.
Use Student Fees
The faculty pay raise and the
library allocation make up nearly
all of the $3,334,310 increase over
last year's operating budget. Of
this sum, approximately $2 million
came from the recent tuition hike
and $1.3 million from the rise in
this year's legislative appropria-
The rest of the budget increase
(about $170,000) will go for the
"minimum provisions" tQ hire new
faculty members in the "critical
The budget approved by the Re-
gents is only the framework for
University spending, as specific al-
locations w i t h i n departments,
schools and other areas have not
been worked out.
How much of the $3 million will
be spent on faculty salary raises
and how much for the non-aca-

demic employe wage hikes, for in-
stance, has yet to be determined.
The operating budget was the
only item of business considered by
the Regents at yesterday's meeting.
In the Red
TRENTON UP-The Trenton
plant of the Thermoid Division
of H. K. Porter Co. has given
up flying the American flag un-
til it gets out of the red.
In a notice to employes it
said it had temporarily discon-
tinued flying the flag "not so
much as a cost reduction, al-

Williams Returns to Capital,
Confers on Political Scene
LANSING MP)-Former Gov. G. Mennen Williams returned yes-
terday to the desk he occupied for 12 years as Michigan's chief execu-
tive and told newsmen he sometimes felt a nostalgic twinge to get
back into the political fight in the state.
Williams, at the invitation of Acting Gov. T. John Lesinski, held
a news conference in his former office in the state capitol.
Williams, presently Assistant Secretary of State for African
Affairs, said the challenge of his new job is an exciting one because
Owhat happens in Africa for the

Cites BritshEdL

I --- - - -

"Education has become a new
and universal religion in which
man sees in education a key that
will open the doors not only toI
his own self-realization but to the'
freedom and independence of na-
tions," Kenneth Lindsay, vice-
president of the Educational Ex-
change Council, said yesterday.
Lindsay, a member of the Brit-
ish Parliament and in his own
words, "a student of American ed-
ucation," discussed new trends in
education and the significance of

next five years will set a course Thant declared that w h i1e
for the next 50 years. Tshombe had renounced secession
Williams predicted that his suc- some of his colleagues have in-
creasingly evidenced a lack of par-
" cessor, Gov. John B. Swainson, ticipation in the talks.
tC aitio fl l i e nwas in for a hard, tough race in Thant said he had suggested
his campaign for reelection this that Robert K. A. Gardiner, the,
fall United Nations officer in charge
away all the talent and put it into have a closer contact with univer- The ex-governor said he would in the Congo, return to UN head-
the universities and destroy the sities on the Continent.I like to campaign in Michigan on quarters for consultation.
secondary schools which are the Lindsay said that due to the Swainson's behalf but that such i Thant informed the Congo ad-
bases of the whole tning." he said. financial problems connected with a plan depends on his duties with sory committee also that the
a plUnitedeNationshhaddwarnedwKa-
According to statatncs. Britain education, "the general problem the State Department.UteNations had"warngKy
is one of the most "under-universi- has become one of practical poll- eStD ent . tngathoities of "oy stongly
tied" nations in the wor'ld. How- tics which has effected. elections." President John F. Kennedy 1eaicviw faypln ohl
ed"r :naBritain ah pr d.Horee The big question is how much to expected to visit Michigan at least an independence day celebration
seivef r laltera Britain ahreardegree T i tnsh u once in October to speak during in Elisabethville July 11-the sec-
is ivr aitm athe? year course spend on education. one Otbrtosekdrn
as op'posed to a six year course on Subsidizes Students Swainson's campaign. ond anniversary of the province's
the ropsea oninyent Britain subsidizes over 90 per Williams said he believed the secession from the Congo.
cent of its students and more and campaign might be as tough as "You may be sure," he added,
This. Lindsay said, has somemoe students a n moen the one which pitted him in a "that our people in the Congo have
effeect on the statistics. Also. Brit- nto the universities. More stu- recount battle against former Gov. been told to be very much on the
yin paces more emphasi, on on- dents are staying on in the see- Frank Kelly, "but the margin is alert for any contingency as a con-
th°-jobl training. Many young peo- ondary schools and there is not going to be a little more generous sequence of the breakdown of the
ale pay a fee on the principle of _nr _schol an the in and I don't think we'll have to talks, he added.


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