SATURDAY, MARCH 18, 1967

THE MICHIGAN DAILY

PAGE TIRE!

SATURDAY, MARCH 18, 1967 THE MICHIGAN DAILY PAflI! TUUI~'W

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Johnson Releases
Deferred Funds
Anti-Inflation Measures Succeed;
Unfreeze Money for Highways

Court Indicts1 FARMERS CLASH:
Alleged JFK Milk Price Conflict Goes On,
Conspirator NFO Wants Strike Stopped

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WASHINGTON (R) - President
Johnson reported yesterday that
anti-inflation measures have suc-
ceeded, pressures have subsided,
and he is releasing an extra $791
million in frozen federal funds.
Most of the thawed out money
is for federal aid to highway pro-
jects ($350 million) and for spe-
cial mortgage assistance for low
cost housing ($250 million).
All told, Johnson ordered $5.2
Pro osral For
Department
Merge To Die
Johnson Pigeonholes
Plan for Combination
Of Labor, Commerce
WASHINGTON () - President
Johnson yesterday pigeonholed
his proposal to create a new de-
partment of economic affairs by
merging the Labor and Commerce
departments.
Organized labor quietly rejoiced.
Johnson told Congress he is re-
ferring the proposal to his Ad-
visory Committee on Labor-Man-
agement Policy for further study.
Predict Quiet Death
Most labor leaders, having
achieved what they wanted, were
officially silent, but many predict-
ed the White House would let the
plan quietly die.
Johnson .has used the labor-
management committee and other
special White House panels to put
in limbo other tentative proposals
that arounsed the wrath of the
politically powerful labor move-
ment.
The AFL-CIO Executive Council
delivered at the White House last
week what was generally, con-
siderer the death blow to the mer-
ger proposal by hinting strongly
it would bring the fight out in the
open if Johnson sent it to Con-
gress for action.
Legitimate Voice
But Johnson, while conceding
the plan had aroused opposition,
M said, "I remain convinced that the
establishment of a new depart-
ment would in no way diminish
the legitimate voice of business
and labor in the council of the
nation."
The AFL-CIO's reaction to
Johnson's announcement delaying
p the merger plan was: "We think
it's a fine message. We think the
idea of studying it by the labor-
management advisory committee
of the President makes a good
deal of sense and we look forward
to the results of that study."
Some labor sources had said
k labor and business are, in many
respects, natural opponents and
to put them under the same fed-
eral roof would lead to a disrup-
tive series of cat-and-.dog fights.
The Johnson administration's
line in urging the proposal was
that it would de-emphasize labor-
management conflict in major
contract disputes and emphasize
instead their constructive role in
building a stronger economy.

billion of federal funds for federal
programs deferred last fall when
the economy was heating up. This
would have cut back federal
spending in the present fiscal year
ending June 30 by $3 billion offi-
cials said.
Earlier this year, Johnson re-
leased $555 million of the frozen
funds. The $791 million added yes-
terday brings the total to about
$1.4 billion, or about 27 per cent
of the total deferred. Actual spend-
ing out of $791 million in the pres-
ent fiscal year was estimated at
$105 million.
Budget Director Charles Schul-
tze told newsmen the administra-
tion would take a look to see
whether more funds can be re-
leased. But, he said, not all can
be cut loose by June.
The action yesterday was on the
eve of the convening of the na-
tion's governors for a day at the
White House today. Some gover-
nors areunhappy about the freez-
ing of highway money, particu-
larly.
Question Timing
Schultze was asked whether the
release of funds was timed with a
visit of the governors. He didn't
answer that specifically, but said
that "what would have happened
if the governors had not met, I
don't know."
Answering another question,
Schultze said that Johnson's ac-
tion yesterday was not dictated by
signs of sluggishness in the eco-
nomy.
"I'd say it is a healthy econo-
my," the budget director said.
The money previously released
also was largely from highway and
mortgage assistance.
Additions
In addition to unfreezing more
funds in these categories yester-
day, Johnson released:
0 For the army corps of engi-
neers $90 mlilion for local flood;
protection and other public works
projects.1
A For grants under the ele-
mentary and secondary education
act, $30 million.'
* For the Farmers Home Ad-,
ministration, $25 million a piece3
for farm operation loans and in-
sured rural housing loans, and
$21 million for emergency loans
to farmers hit by disasters.
The release of this $21 million1
for disaster loans is effective im-
mediately. The other funds are be-'
ing unthawed effective April 1, to
allof sometime for planning, for-
mally notifying the states, and
other administrative steps.

WASHINGTON-MICHAEL V. O"HARE talks to reporters in a
Capitol corridor today after being accused by his former boss,
Sen. Thomas Dodd, of lying in previous testimony before the
Senate Ethics Committee.
FUNDS EFFORT:
Ethics Committee
Hears Dodd Testify

Charges Clay Shaw
With Conspiracy in
Kennedy Slaying
NEW ORLEANS, La. (P)--Clay
L. Shaw, a wealthy retired busi-
ness executive, was ordered Friday
to stand trial on a charge of con-
spiring to murder President John
F. Kennedy. The ruling followed
a four-day preliminary hearing re-
quested by Dist. Atty.-Jim Gar-
rison.
A three-judge Criminal Dist.
Court panel ruled unanimously
that Garrison had presented suf-
ficient evidence to warrant a trial
for Shaw.
The Warren Commission report,
which said Oswald had acted alone
in the assassination of Kennedy,
was not admitted as evidence after
Judge Bernard Bagert said it was
"fraught with hearsay."
A witness for Dist. Atty. Jim
Garrison told a three-judge Crim-
inal Court panel yesterday that he
saw two men-whom he now can
identify as Lee Harvey Oswald and
Clay L. Shaw-in conversation
near Lake Pontchartrain here in
1963.
Vernon Bundy, 29, walked over
to Shaw in court and identified
him as the man he saw with Os-
wald at the lakefront.
Bundy testified on the fourth
day of a preliminary hearing to
decide if Shaw, retired managing
director of the International Trade
Mart, should go on trial for con-
spiring to assassinate President
John F. Kennedy.
He said one of the men he saw
was young, the other much older.
He said he heard the "young guy"
ask the older man plaintively,
"What am I going to tell her?"
The witness then said the older
man handed over "a roll of money
or it appeared to be. The young
guy put his hand in his right
pocket where he had a bunch of
pamphlets."
When the defense claimed Bun-
dy's testimony was hearsay, Gar-
rison-handling the interrogation
of a witness for the first time
since Tuesday-asked Bundy to
identify two pictures.
Bunday said one was of Lee
Harvey Oswald, the other of "the
Shaw who has been in the papers
lately." He said the pictures were
of the same men he saw at the
lakefront in 1963.
Under questioning by Garrison,
Bundy described the "older man"
h esaw as "about 6-foot-1 or 6-
foot-2 but I'm not sure because
I'm squatting down. He was dis-
tinguished dressed, gray hair."
He said the younger man was
"a junkie or beatnik guy. He need-
ed a haircut and a shave. In fact,
he needed everything."
Perry R. Russo, an insurance
salesman, testified Tuesday that
he saw as "about 6-foot-1 or 6-
apartment of David W. Ferrie and
heard them plot to kill Kennedy.

By the Wire Services
Calling its milk boycott 80 per-
cent effective, the Michigan
branch of the National Farmers
Organization (NFO) raised the
possibility of ending its milk hold-
up by the weekend.
William R. Mahaffy, president
of the Sanilac County NFO, in
the heart of Michigan's chief milk
producing area, said;
"There is no reason why we
can't win and get contracts rais-
ing the price we get for milk.'
There is no use prolonging the
holdout; we want to end the strike
this weekend."'
The NFO claims that farmers
could hold milk for at least a
couple of days and maybe longer
depending on the size and re-
frigeration of their bulk tanks.
On Wednesday, in an area
stretching from New York to
Idaho, the NFO opened its cam-
paign to withhold milk from dair-
ies until the farmers get a raise
in price. The farmers are asking
for a two cent raise in price over
the eight cents per quart they
now receive.
So far it has been difficult to
gauge the effects of the strike as
NFO leaders, both locally and na-
tionally, have refused to say how
many dairy farmers are participa-
ting in the boycott.
Ray Nielsen, state milk repre-
sentative for the NFO, claimed
that the milk strike was effective
and that some dairies, including
two in Detroit were already out of
milk. He declined to identify the
dairies involved.

Locally there were no apparentf
effects of the boycott as Ann
Arbor milk deliveries continuedI
unabated. The state's other group:
of dairy farmers, the Michigan
Milk Producers Association (MM-
PA), have not joined the NFO in
withholding milk.a
Glenn Lake, president of the
MMPA and its parent Great Lakes1
Milk Marketing Federation said
only five per cent of Michigan'si
dairy farmers are supporting the1
NFO.t

Officials Show Evidence of
Hanoi s Truce Exploitation

WASHINGTON (AP) - Defense
officials yesterday showed photo-
graphic evidence of what they
called North Vietnam's "logistical
exploitation" of the February
truce period, when U.S. bombing
of Communist territory was sus-
pended.
Newsmen were shown more than
two dozen previously secret intel-
ligence pictures and slides of maps
and graphs outlining what was
described as a "well-executed and
magnitudinous' resupply effort by
the Communists between Feb. 8
and Feb. 11, the scheduled four-
day pause for Tet, the lunar new
year.
Officials said these showed
clearly that the Communists "an-

ticipated and calculated in all
their planning the probability of a
bombing pause during Tet" and
took advantage of the cease-fire
to "improve their over-all logistic
positions with impunity."
Even so, officials said, the
movement of material constituted
no violation of the cease-fire
agreement. Spokesmen estimated
U.S. ships unloaded perhaps 100,
000 tons of American supplies and
equipment in South Vietnam dur-
ing the same period.
A Tass dispatch from Haiphong
said yesterday that American
planes fired rockets and Friday
and Saturday against four resi-
dential quarters within that city,
North Vietnam's major port.
It was a weekend in which the
U.S. Command in Saigon an-
nounced a power plant and am-
munition storage area at Hon Gai,
27 miles northeast of Haiphong,
were hit as major targets in the
air war.
The Soviet news agency account
said Russian and French journal-
ists had visited a residential quar-
ter in the center of Haiphong,
where exploding Shrike' rockets
damaged an apartment house and
canteen, killed one person and
wounded five.
In San Francisco, Harold Brown,
Secretary of the U.S. Air Force,
said yesterday that U.S. bombing
on North Vietnam is "the most
precise in the history of air war-
fare."

Heatherwood Dairy in Lansing
said that only one of its 120 farm-
ers had withheld milk.
A field representative for Mc-
Donald Dairy in eight Lansing
area counties said that he knew of
only about 10, farmers who were
holding back milk.
Lake accused the NFO of trying
to take over the older MMPA. "In-
dividual farmers are not respond-
ing to their program and they're
trying to force it on them in an-
other way." he declared.

WASHINGTON (A)-Sen. Tho-
mas J. Dodd said yesterday his
is a life dominated by politics and
burdened by debt, then he left
his fate in the hands of the Sen-
ate ethics committee, insisting,
"my conscience is clear.
"I don't believe any man is
going to look me in the eye and
say I've done wrong," the white-
haired senator said in a emotion-
al defense against accusation that
he improperly used political con-
tributions for personal expenses.
For 2 hours and 10 minutes, the
Connecticut Democrat was his
own defense witness, sometimes
angry, often soft-spoken, always
insistent that he has done no
wrong.
Personal Gifts
Time and again, Dodd insisted
that a series of testimonial din-
ners which raised nearly $190,000
were intended to produce personal
gifts for him-and that the peo-
ple who paid $100 for tickets knew
it.
Those affairs and Dodd cam-

paign fund-raising efforts, pro-
duced an estimated $450,000.
Dodd said his personal and pub-
lic lives are so tightly inter-
twined that virtually every dollar
he spends-to this day-goes to
cover a political obligation.
Mental Torture
"This is the end of a hard period
for me," Dodd said when his tes-
timony was done, "really a period
of 14 or 15 months of torture,
mental torture."
"My conscience is clear. Other-
wise I don't think I could have
survived this.
"I've done the best I could."
Thus after five days of hearings,
a torrent of testimony and a tangle
of figures, Dodd's case went to a
panel of his Senate peers, the six-
member ethics committee.
To Prepare Report
Its chairman, Sen. John Sten-
nis (D-Miss), said the bipartisan
panel would "move as rapidly as
consistent with-our obligations" to
prepare its report to the Senate.
'ii

Labor Votes Go to LiberalsI
As Tories Win British Seat'

LONDON (AP)-Pinched by the
government's economic squeeze,
British voters deserted Prime Min-
ister Harold Wilson's Labor party
yesterday in the fourth successive
special election in a week.
This time the protest votes went
mostly to the Liberal pary, fol-
lowing the pattern of defections
from the two major national par-
ties-Labor and Conservative-to
groups claming to stand for local
interests.
Conservative Peter Emery won
the special election Thursday in
the Honiton Dist. of Devon to fill
a vacancy in the House of Com-
mons.
A Conservative victory was never
in doubt since the Tories have
held the seat since 1885. The big
surprise was the Liberal vote.
Du Cann and Liberal party
manager Eric Lubbock both said
the trend augured well for their
parties in next month's local elec-
tions, when the big prize is the
local government of London.
The week's four results pushed
Wilson's House of Commons ma-
iority down to 92, a comfortable

enough margin until he has to call
a general election, before 1971.
But the losses undercut one of
Wilson's strongest arguments
within his party: that he can win
elections and carry his colleagues
on his coattails.
This was the assumption behind
his attack on some 60 Labor MPs
who abstained in voting on the
government's defense policy ear-
lier this month.

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SUNDAY, MARCH 19

7 P.M.

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