11 LEGISLATURE VIOLATES ACADEMIC FREEDOM See Page 2 I Seventy-One Years of Editorial Freedom ~~E~Ait SHOWERS High-88 Low--6 Warm, partly cloudy; Chance of light rain. FOUR PAGES VOL. LXXII, No. 5-S ANN ARBOR, MICHIGAN, SATURDAY, JUNE 30, 1962 SEVEN CENTS FOUR PAGES Court Move Stalls Vote on Con-Con High Tribunal Agrees To Hear November Election Decision Appeal By MARK.BLUCHER 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 Regents Pass Fa Approve Budget; culty Salary --. . . . . * ::...:...."" ................................... . 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 brackets. 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 world. 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 are: 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 sides. January Decision Experts say a Supreme Court - decision might be expected in January. 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 year." 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- r!paign. "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. SEN. JAMES O. EASTLAND ... believes in prayer Prayer .Bill Introduced 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 decision. 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 literature. 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 case. 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 States. 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::: 1 SUPPORT IN SENATE: 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 44. 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 people." Sen. Hubert H. Humphrey (D- Minn) assistant Democratic leader, said "this proposal can and will be passed by the Senate and the House." 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 effect. 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- ministration. 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 Breakdown Causes Alert UNITED NATIONS (IP)-Acting 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 Hike Pay Raises' Individually Determined 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 colleges. "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 deans. 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- tion. The rest of the budget increase (about $170,000) will go for the "minimum provisions" tQ hire new faculty members in the "critical areas." 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 MONEY, POLITICS: Cites BritshEdL I --- - - - By BARBARA STANLEY 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. minine