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January 06, 1966 - Image 15

Resource type:
The Michigan Daily, 1966-01-06

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High Prices


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EDITOR'S NOTE: This is the of the product. That is, if a book, in stepping to allocate funds for a
rst in a three-part series on pric- store were located in the central ; bookstore, to insist that the Uni-
ing in Ann Arbor as related to
changing trends in the attitudes of ;Iarea of the Arb, most likely its}versity reappraise its housing fa-
student-consumers. The first part prices would have to be relatively cilities and prices in view of stu- VOL. LXXVI, No. 84
consists of generalizations on the lower than the other stores to dent needs.
!!issues; the second deals with re-
cent planning among students to draw customers, The inevitably conclusion is that
influence pricing; and the third The same concept applies to the initiative to improve the stu-
consists of various details and con- book stores in general. Assuming I dent's economic situation does, in
elusions on Ann Arbor pricing, the expected high level of demand fact, rest almost exclusively with R i bi
By DICK WINGFIELD for books, food and housing in a the student. For without an ade-
college town, the prices will be quate mandate from the students,
Consumers are not represented naturally higher in stores near the the FHA proposal will not be f-1-
s the American legislative pro- campus than in stores, one, five or lowed through of it should be),
ess. This assertion, carrying with 10 miles from where the consum- the state government cannot be
it a few qualifications, has been ers are concentrated. justified in exerting its influence
a significant force in the devel- Supplementing this analysis, the and the University can only re-
opment of American economic his- example would tend to show that main at a status quo on such By LEONARD
tory, and'holds much significance the average student would will- matters as a University bookstore.'
in the analysis of prices in Ann ingly pay for convenience. This Why? Because if there is no Sen. Abraham,
Arbor. happens while parents sagely add noise from the consumers, then Conn) has plans t
Undoubtedly, the age is wan- that "food doesn't cost that much it must be assumed that the free efforts" to pass hi
ing when "Mother anid father pay here in Three Rivers," or "Our enterprise system is working to the "tuition tax credit'
all of the bills, and we have all whole family here in Dowagiac satisfaction of all. posal that has gair
of the fun." Many students today pays about as much rent as you A somewhat interesting obser- versity backing-in
are definitely aware of where their do in Ann Arbor" or "I know vation is that some students are of Congress.

Seventy-Five Years of Editorial Freedom



t foi
Ribicoff (D-
to "renew my
s controversial
" bill-a pro-
ned tacit Uni-
this session

-Plans To Renew Criticism of Beards
r Tax Credit Blll Spu~rs Cutler Reply


Both bills essentially discount
the amount of tax which a person
must pay while also paying for the
tuition, fees and books of a col-
lff t d tnt ThV dl nn. rnidi

Russell Thackery; the associa-
tion's executive director, recently
criticized the proposal in two
specific areas.


money is going. Even in light of
this change, however, we still have
to "figure a hell of a lot to show
what we have done, with the coin
we blew at dear old Michigan."
Need Balance
In essence, then, our money isn'tj
very valuable in the present AnnI
Arbor economy; prices are high,I
mother and father can't do much
about it, and the situation doesn't
seem to be altering itself to suit
legitimate student desires.
One question stands at this
juncture of the discussion: Why
is the initiative to improve the
student's economic situation the
province almost exclusively that of
the student himself? That is, why
can't the free enterprise system,
the University and the gov-
ernment, work to yield a balance*
which satisfies both merchants
and students?
An answer:
One commentor said recently
that the present pricing system
in Ann Arbor is the product of
a tradition beginning during the
depression years when studentsj
were invariably labeled as a priv-
ileged class, both here and on cam-
puses across the nation. He said
that in this era the students
were "fair game" partially be-
cause the bills were being paid
by parents in other communities.
This philosophy may still have
influence today, deriving its pe-
cuniary success from the assump-
tion that the students themselves

you have to have special books, awakening to the pricing forcest Ribicoff's measure, introducedj
but couldn't you pick them up in to which they are subject and, if into the last session of Congress#
Detroit?" they have not succeeded in alter- and still pending before the Sen-$
These comments and sugges- ing the balance of the Ann Arbor ate Finance Committee, generally I
tions may be very valid, but the campus economy, they are surely parallels one being pushed in the
fact remains - students, or any deciding what will effectively do House by Rep. Albert Herlong ;
group of consumers for that mat- so. (D-Fla).
ter, will continue to pay for con-

lege sLUaenU .Lney UoJ LUr kaV 0 "In the first place," he said,
for extra or increased exemptions "it helps the wrong people." He
suppogring the studenfthe ro thlsth rn epe
in figuring the tax of the person explains that the eventual cost of
Rather, they provide for net the tax credit measure has been
Rathrheyproidefoinoe estimated close to $1.25 billion
deductions from the total incomeper year. Hesargues that that
tax which would be figured just much money would be much more
as at present. For example, under "socially useful" by providing
Ribicoff's bill, a person paying scholarships for the poor rather
$1,500 a year to support a college than tax relief for the relatively
student would be allowed to sub- well off. "In essence," he says,

venience. Merchants know this and
price accordingly. Their pricing1
techniques, therefore, are definite-
ly within the ethics of the free
enterprise system-excluding the
possibility of price fixing, which
would be, incidentally, redundant
in view of the forces mentioned
Some Answers

Appoint Bentley To Head
Major Gifts Committee

In answer to the central ques- Alvin M. Bentley of Owosso has
tion, therefore, it seems that the been appointed chairman of the
free enterprise system, the Uni- major gifts committee of the Uni-
versity and the governments have versity's $55 Million Program, Re-
not worked toward remedying the gent Paul G. Goebel, national
grievances of parents and students chairman of the fund drive, an-
because of the inherent charac- nounced recently.
teristics of these institutions: Bentley, a University graduate.
0 The free enterprise system will work with Goebel and other
says that the price coordinates leaders of the national fund cam-
with supply and demand factors. paign in seeking contributions of'
The fact that Ann Arbor merch- I $100 000 or more each.
ants are not bankrupt illustrates "The University is fortunate in-
that they are pricing within the I deed to secure the help of Mr.
limits set by free enterprise. Bentley in this important pro-
* The University does not exist 1 gram," Goebel said. "He is a long-
as an organization for economic time friend of higher education,
reform. It will enter economic and has been a leader in this'
struggles only when the outcome state in recognizing the expand-'
is shown to be of crucial impor- ing needs of our colleges and uni-
tance to students. The ethics 'of versities."
this pragmatism may be debated, The program is a nationwide
but the function of the Univer- ? effort to seek $55 million in pri-
sity will remain the same. vate contributions from alumni,

has said that the University seeksI
through private philanthropy to
ensure continuance of the "free-
dom to explore, the capability to
achieve and the courage to lead,"
which has gained the University'
world-wide recognition.
The $55 million program is
scheduled to reach its goal in
1967, when the University will be
celebrating its 150th anniversary.
A former congressional repre-
sentative, Bentley is presently
state chairman of Project Hope,
and consultant to both Michigan
Higher Education Facilities Com-
mission and the state board of
' education. In 1961 he established
the Alvin M. Bentley Foundation,
which supplies many scholar-I
ships for undergraduates in all i
of Michigan's public and private
Bentley was also named by Gov.!
Romney as a member of the "blue
ribbon" Citizens Committee on
Higher Education, and was chair-|
man of this group's interim com-
Area chairmen have been
chosen to lead the fund drives in
various parts of the state. Resi-
dents of the areas have been
named to volunteer committees to
aid in seeking gifts.

tract $325 from his income tax:
Under Fire
Both measures have had a dif-
ficult time in Congress. Ribicoff's
was defeated 48-45 in 1964, under
fire from the White House. It has{
not been voted upon since.
His bill has been primarily de-
signed to aid middle-income fam-
ilies, those pinched by higher edu-
cational costs, yet not aided by
any governmental programs.
In order to do this, the taxa
credit is based on the first $1,500
paid for a student's upkeep. The
amount of credit is equal to 75
per cent of the first $200 spent
on him, 25 per cent of the next
$300 and 10 per cent of the next
$1.000. The maximum credit al-
lowable under Ribicoff's proposal
is $325.
Because the bill's effects are
concentrated so heavily in the
middle-income groups-62 perl
cent of its dollar benefits would
go to families with incomes be-i
tween $3,000 and $10,000 per year
-it has aroused opposition from
quarters that might have been
expected to welcome it, the col-
leges themselves.
The National Association ofx
State Universities and Land Grant
Colleges, the nation's major or-
ganization of large public col-1
leges, has been the leader in thej
fight against tax credits.
The University has been thet
major hold out in the association's
attack on the bill. When the as-A
sociation voted to censure the4

t' a a ., , a fv aaa a a . .* ,+a

There has been considerable
alumni concern about the ap-
pearance of undergraduates who
wear beards and dress in a
slovenly manner. Recently, Re-
gent Paul G. Goebel expressed his
concern about this matter in a
letter to Vice-President for Stu-
dent Affairs Richard L. Cutler.
Cutler's response is contained in
the following:
"Dear Regent Goebel:
Thank you for your letter con-
cerning the appearance of certain
students who inhabit the Michi-
gan Union . . . Let me make the
following suggestions as to what
may be said to alumni and others
who constantly raise the issue
with us . . .
1) Every generation of students
has its own nonconformists. This'
one is no exception. The fact that
the nonconformity is expressed in
terms of beards (and on rare oc-
casion, bare feet) is probably
basically no different nor more
offensive than the nonconformity
of extremely tight sweaters, peg-
ged pants or zoot suits. I can
recall when, as a high school stu-
dent in the early 40's, I was
deemed to fall in the "jerk" or
undesirable category as a con-
sequence of having my hair cut
"butch" style, identical to the
way I wear it now. You may also
recall that Lincoln was castigated
during the early years of his po-
litical career for not wearing a
beard. Thus, with a little his-
torical perspective, the relativity
of these matters is rather easily'
2) The Union is a public place,
and the civil law permits wide
variance of dress and behavior in
such places: I state this not in an
effort to shrug off responsibility
I for the problem, but merely as a
fact which we judge to make
efforts at direct "crackdowns" un-
3) Undoubtedly, some of the
persons who appear thus in the
Union have more characteristics
of social undesirability. Some, I
am sure, are outright bums. How-

people. Their intellectual level
leads them often into a sensitivity
to and criticism of prevailing so-
cial customs and established mores
which they express sometimes ap-
propriately, and sometimes in the
form of a pointed rebellion in
their style of dress or conduct. I
am confident that the majority of
such persons will develop beyond
this particular style of rebellion
and become constructive members
of society. Not all will, and the
question is whether to attempt
to bring them into conformity by
direct means, or through persua-
sion and the benefits of the devel-
opmental process, to let the prob-
lem behavior run its course.
4) The final point has to do
with the nature of the University
itself. Of all of society's institu-
tions, the University is the one
most obligated to tolerate non-
conformity. It cannot determine
arbitrarily on matters of politics,
custom, ideology, etc. In a so-
ciety where individuality is threat-
ened both from within and with-
out, the University must be a
bulwark of individual freedom in
both thought and action. For it
to do otherwise is to betray its
tradition and, I believe, ultimately
to undermine the principles on
which American society rests.
Let me assure you that I am
no more fond of the displays that
can be seen at the Union than
you or Mr. Hill. Let me further
assure you that we work- hard to
educate and to point out that non-
conformity can be expressed in
more constructive ways than via
bare feet and beards. We shall
continue to do so. Since we in-
evitably will not succeed with
every student, the public will be
exposed to a certain unfavorable
aspect of the University's image.
I find some comfort in the fact
that the University has survived
similar nonconformity in the past,
and that its products (some of
whom were "bearded" during their
days here) are almost universally
a source of pride to us and of
credit to the institution.
Richard L. Cutler
Vice-President for
Student Affairs


do not usually pay their costs of 0 Governments do not have the other individuals, foundations and
education and parents are too far privilege of legislating lower prices corporations. It is the largest
away to effectively protest.. directly. Their operations must project of its kind ever mounted
Now, however, outspoken stu- therefore be relative to exigency by a tax-assisted university.
dents are revitalizing the criti- and indirect in their effect. An Gifts received in the $55 million
cisms their parents have been har- exception in this case is the Fed- i program are to be used for Uni-
boring for years. eral Housing Administration's ver ity projects for whvich tax
There is another dimension to "floating offer" to supplement money is not available. Such
the argument: Availabality of funds directed to low cost hous- projects include new buildings and
merchandise, or convenience for ing. Generally, however, the state equipment, schoralships and en-
the consumer, plays just as signifi- government can only stand back dowed professorships.
cant a role in pricing as the worth and watch until they are justified i President Harlan H. Hatcher

"tax credits are an upside-down
scholarship. They help people that
don't need it."
! Second, Thackery sees thej
plans as not being of any final
benefit to parents at all. "All
oolleges will do is raise their tui-
tions in order to use the tax credit
system as a funnel to get morej
federal funds that aren't tied tol


specific program," he

Ribicoff proposal last spring. the "And," he concludes, "there
University refused to go along got to be better ways than
with its 96 fellow members. of spending $1 billion."

says. ever, by no means all are. We
have know that among students who
that dress like this are many outstand-
ingly bright and productive young





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